Finances are a major concern in many divorces. This is especially true when there is a chance that the Maryland couple’s joint assets might be misused by one of the spouses before the process even beings. However, there are ways to protect some assets before and during the divorce.
Make an agreement
One way to prevent conflicts over shared assets before divorce is by signing a post-nuptial agreement that addresses how assets will be divided. This can also list directions about joint monetary or credit accounts and how they might be used during this period of transition, which can include setting maximum spending amounts for each delegate.
Organize your finances
As you prepare for the divorce process, you will need to protect your finances. To do this, you should understand your finances fully. Some of the things you can do include:
- Making explicit lists of assets and liabilities
- Closing or freezing joint credit accounts
- Creating a financial affidavit presenting a sworn statement about your individual income and personal finances
- Create a realistic budget for the future based on your income
- Informing your lawyer of any questionable spending by your ex-spouse of your joint funds
Protecting your interests
Your finances will help determine how confident and stable you feel about your financial future. If you and your soon-to-be ex-spouse have accumulated a variety of joint assets, you might find it beneficial to speak with financial professionals who can help you determine how assets might be divided and how taxes might impact the various financial decisions made during the divorce process.
Protecting your assets before divorce should be a priority, particularly if you are older and closer to retirement since you will have less time to prepare financially for this change. Because divorce can complicate an already-delicate financial situation, finances should be one of the first things your address as you prepare for it.