Divorce cases in Oklahoma can be stressful and complex. An area that most people facing divorce fail to prepare for is the financial aspects of divorce. You can face financial ruin if you or your spouse make bad financial decisions during a divorce. The movies may have glammed divorce up but people with real-life experiences know how financially tough the process can get. Finding your foot after a divorce depends on how well you have planned your finances before and during the split. If you are considering taking this step or are already in the process, knowing how to protect yourself financially is essential. Below are some of the tips that will help you to protect your finances in divorce.
Establish Separation/Divorce Legally
Once the topic of divorce or legal separation has been raised, there is no point in delaying the inevitable. Taking the right steps to legally initiate the divorce process is the first step towards starting a new life. Filing for divorce or legal separation affects how the money made after this date is handled. Your income during the divorce process may be protected as a separate asset, if you take the proper steps to protect your financial assets during divorce. Otherwise, your financial assets may be considered marital property.
Request Your Credit Report and Monitor Your Financial Activities
Whether you held a joint account with your spouse or not, having an idea of what your finances are like is essential. Going into a divorce, it is essential to request a copy of your credit report. Doing this will give you an idea of the actions that your spouse may have taken that hurt your credit score. Doing this also prepares you for life after the divorce. With adequate knowledge of your credit score and where you stand financially, you can begin to put plans in place for your financial future after divorce.
Lenders, especially credit card companies, are all about their money and do not care about your divorce. If your spouse builds up a huge debt on a jointly owned account, you remain liable. Leaving your marriage with no debt is a lot better than having debts to pay months or even years after the divorce has been finalized. Now is the time to address the debt. If you have the money to clear the debt, do so. However, if you can’t, it is best to divide the debt into two parts and transfer it to individual accounts while closing the jointly held account.
Move Half of Your Joint Balance to a Separate Account
The law allows you to move as much as half of the amount in your joint account in a separate account. You should also consider redirecting all direct deposits and new payments into the new account. Doing this will save you from the injunction placed on jointly held accounts as part of the divorce process. In addition, this money can be used to finance your divorce and welfare while the case is pending in court.
Re-evaluate your Assets
One of the most complicated aspects of a divorce is asset sharing. Some partners become overly possessive and want more for themselves in the divorce. Going through your assets with your partner to decide who gets what can help simplify the entire process. It is recommended that you approach this aspect with a clear head and without a sense of entitlement.
Get a Clear Picture of Your Cash Flow
Divorce can be demanding. However, amidst all of these, you must not lose focus on your income and budgeting. Getting a clear picture of what comes in and goes out can help you to put things in perspective. It also helps you to make other financial decisions that are relevant to living a solo life after the divorce has been perfected.
Don’t Give Up on Assets or Investments
Divorces are often messy. In some cases, they may drag on for a longer time than you imagined. This is why you need to pay attention to the assets and investments that you are entitled to. Doing this will help you to lay a solid financial foundation upon which you can build once the divorce has been finalized.
Contact – Cannon & Associates: Your Partner In Oklahoma Divorce Cases
The law provides an avenue for your protection in a divorce case. Cannon & Associates has the legal experience and expertise needed to save you from extensive financial losses. Founder John Cannon has been recognized as a Super Lawyer and our entire team is dedicated to Fierce Advocacy for clients facing divorce in Oklahoma. Contact Cannon & Associates by completing the CONTACT FORM ON THIS PAGE NOW or CALL at 405-657-2323 for a free confidential case evaluation.