When it comes to divorcing in Texas, there is a fact that must be faced: women often lose the most in a divorce. In spite of the recent upsurge in women’s equality, women still make less money than men universally. Also, the majority of child-raising responsibilities often fall to women after a divorce, and it goes without saying that high costs come along with them. It is common for the standard of living to go down significantly for women after a divorce as well.
The following steps will help you make good decisions and possibly save money too. While they’re vitally important for women, men can benefit from them as well.
Talking to a lawyer is a smart first step in protecting your assets when contemplating divorce. Asking your attorney about protecting your finances is important. Also, finding out what is going to happen next and how to get through those next steps with little financial loss is equally essential.
Next, get a copy of your credit report. It gives you a list of what new accounts have been opened in your name and also informs you of any changes to your existing accounts. Be on the lookout for identity theft.
Closing joint accounts will save you from possibly being responsible for your ex-spouse’s credit card debt and can prevent him or her from moving assets to an individual account. You will be held accountable for the full balance, so it’s best to shelter yourself from any damage that could occur.
If you find that you cannot close a joint account because it may be needed to purchase items for your children or to fund shared expenses, you need to monitor the account very closely. Opening accounts in your own name is necessary, especially if you don’t currently have any. It is best to open them in places other than where your ex-spouse has theirs in order to avoid confusion. Opening those accounts while still married will boost your credit limit a bit because they are often based on your joint income.
Once your assets are protected and stable, it’s time to make a budget and stick with it. Even if it seems like your ex would never try to tamper with your assets, the high level of emotion and uncertainty of the future that accompanies a divorce means that it’s better to be safe than sorry.
Source: Source: MSN Money, “15 financial moves to make before you divorce,” Marilyn Lewis, June 24, 2014