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Preparing financially for divorce

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As Georgia residents and others welcome the arrival of spring weather, it may also be time for spring financial cleaning. This can be especially worthwhile for those who are going through a divorce. Obtaining documents before the divorce process starts can make it easier to have the information needed to negotiate a fair settlement. By getting this information early, a spouse won’t have to ask a separated partner to willingly provide it.

A soon-to-be ex should also make sure to get a copy of their credit report and to open accounts in their own name. The CARD Act allows individuals to use income earned by a spouse as the basis for obtaining credit. Therefore, a spouse could possibly get a credit card even if they were not working prior to the end of a marriage. Opening a personal savings and checking account can also help to gain a sense of financial independence from an ex-spouse.

When ending a marriage, it can be worthwhile to have an entire divorce team. This team could include an attorney, accountant and therapist. By taking an objective approach to the divorce, it can be easier to obtain a settlement that sets a divorcee up for long-term success.

The end of a marriage can be a complex process for those who have a high net worth. For instance, it could be necessary to consider the tax implications of splitting up a 401(k) or selling a marital home. An attorney could work with a spouse to craft a settlement that takes tax and other considerations into account. Legal counsel may also review prenuptial or other agreements if they exist.

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