When marriages encounter problems, separation sometimes occurs. This can be an emotionally trying time for all involved but its s important to get help. A marriage counselor, a lawyer, whatever you need.
Dealing with money and finances during a separation can be difficult. It may cause heated arguments and worsen the situation. It’s important to sort out your finances and correctly handle the money in these situations.
We have compiled a list of tips for how to do this.
Know Your Assets
Understand what you own and what you have rights to, as a couple and individually. Research your state’s laws on division of assets and don’t hesitate to seek a professional. Understating your assets will prepare you for life after separation or divorce.
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Know the Finances of Your Marriage
If divorce has been talked about, you should make it a point to know what your spouse is spending, earning, saving, and investing. Avoid letting your spouse hide money from you or keep you in the dark when it comes to finances.
Child Custody Policy
When a child is involved, you need to have a detailed conversation about the child’s future. Devise a plan for which parent the child should remain with, how much child support will be required, and understand the visitation rights.
We recommend writing out a plan the help you prepare your child and help them deal with this emotionally challenging time.
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Terminate Joint Accounts
This step is extremely important. You are held responsible for any debts your spouse has until a legal document says otherwise.
Terminating joint accounts will help protect you from these financial liabilities. You should also reset all passwords to social media, email, etc. You may also want to consider getting a credit card in your own name.
For couples without children, establishing a budget is fairly simple. You are each responsible for your own needs, and you split the bills.
However, when children are involved or when only one spouse works, problems arise. These cases can be difficult. The family must adjust to a less expensive lifestyle. Planning and adhering to a budget will help you through this.
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This is a hard one. Often, when people separate, they treat themselves to shopping sprees, vacations, or a new car. It helps take the mind off everything going on. However, this is a bad idea. This could lead to you being accused of dissipating assets, which is bad.
You should pay for any joint account debts as soon as you can. Understand the credit details of the account, pay the debt and close the account.
Date of Separation
This is critical. The meaning differs from state to state so learn the laws for your state and make the date of separation clear. This will help when it comes to dividing income and properties.
Anything from before the date of separation will be divided but anything acquired after the date of separation will not be shared with your spouse.
Separations can be chaotic, but it is essential to handle your finances properly during this time. For help with your financial needs during a separation or divorce, let the experienced team at Blisk Financial Group help you.