March 23, 2022

Filing for divorce isn’t just an emotional experience, it’s a logistical one as well. Marriage is a financial partnership, and filing for divorce divides that partnership. While many think of divorce as simply splitting up your marital assets, you also need to consider what will happen to your debt, credit, and overall financial picture. Knowing how to protect yourself financially when filing for divorce can help you begin your new life with a clean slate.

Understand Your Joint Responsibilities When Filing for Divorce

You and your spouse are both responsible for any joint debt. This includes your mortgage, your car loans, and any credit cards you hold together. Even if your spouse is the primary holder of the loan or card, if your name is on it, you are responsible for sharing in that debt. Your divorce is not on your credit report, and if your spouse defaults on payments on any of the debts included in your name, you can be held financially liable, even after your divorce. Make sure you know what debts you hold together and make a plan to split the responsibilities. In most cases, this will mean refinancing or transferring debt to a new account that is under one name only.

Open Your Own Checking Account and Credit Card

Filing for divorce can bring out the worst in people. Even if you think your spouse would never be vengeful, there is always a chance that things could change and they may try to hurt you financially during a divorce. Some spouses have been known to drain a joint checking or savings account, run up charges on a credit card, or try to cut off access to shared finances. It’s a good idea for both spouses to open accounts in their name only and deposit their paychecks into their own accounts. Make sure that any automatic payments that come out of the joint account are transferred accordingly so they aren’t impacted when the joint account is closed. In addition, it’s a smart idea to open your own credit card so you can start building credit in your own name. Close the joint card, transfer any balances accordingly, and start fresh.

Keep an Eye on Your Credit Report

While checking your credit report is something that all adults should be doing on a regular basis, it’s especially important after filing for divorce. Make a note of everything on the report under your name and make sure that you are not on any accounts you shouldn’t be.

Change Your Passwords

Just like opening your own accounts to separate your money, you need to protect your finances from your former spouse with your passwords. Many spouses know each other’s passwords and may even have shared passwords for banking and credit cards. Change all of your PINs, passwords, and security questions, and focus on using questions and passwords that your spouse cannot easily guess. Make sure to update all of your financial accounts with your current contact information.

Staying logical and businesslike with your finances can be difficult when you are emotionally navigating a divorce, but it’s important to go through this part of the process with a clear head. Having a knowledgeable divorce attorney to help you through the process will ensure you are making decisions without letting your emotions take over. No matter how friendly and mutual your divorce may be, protecting yourself is very important to your financial future. If you’re going through a divorce and seeking reliable, experienced representation, contact my office today.