5 steps to financially prepare for divorce

In a lot of marriages, one spouse assumes responsibility for paying bills and managing household finances. This can be a convenient arrangement during a strong marriage, but if a divorce brings it to an end, then the other spouse is in limbo regarding key financial matters such as income, expenses, investments, and debts. If that “other spouse” happens to be you, then here are five ways you can strengthen your financial position and prepare for independence.

Step one: Hire an attorney

Once the decision is made to divorce, hire an attorney immediately. Not just to represent you during the divorce process, but also to ensure that your rights are protected, especially where finances are concerned. In acrimonious divorces, it is not unusual for one partner to abuse a joint credit card or line of credit to spite the other, hoping that the debt obligation will be divided equally. Your attorney can help you convince a judge to award you damages when it comes time to settle.

Step two: Organize all your important financial documents

Collect all important financial documents such as bank account statements, credit card bills, and tax returns. It may take some digging and calls to the financial entities involved, but aim for at least three years’ worth of statements to ensure that your spouse has not been quietly channeling money out of joint accounts in preparation for divorce.

Step three: Separate yourself financially from your spouse

You need to create your own financial identity if you haven’t already. Open a new bank account and credit card in your name alone, remove your spouse’s name from any of your accounts, and replace him or her as beneficiary on your pension plans and life insurance policies. Don’t forget to also remove them from any estate planning arrangements such as wills and trusts.

Step four: Establish personal (and private) mailboxes

Set up your own confidential email account and P.O. Box address that you alone have access to. This will allow you to send and receive sensitive financial information and communicate with your attorney, bank, credit card companies, financial planners, and more.

Step five: Review your credit report

Protect yourself from any debts and liabilities incurred by your spouse after the divorce process begins. Get a copy of your credit report from all the major reporting agencies and examine it for any new accounts you don’t recognize. If you notice anything that raises a red flag, then show it to your attorney right away.

An experienced New York family law attorney can help you protect your financial rights and leave the marriage with the resources you need to rebuild and be independent in your new, single life. At Eskin & Eskin, P.C. our family law attorneys have over 40 years of combined experience. If you are considering divorce or have a family court case in court, then contact our office at 718-402-5204 or visit www.EskinAndEskinLaw.com for more information and to set up a free consultation.