Alarming statistics reveal the divorce rate has almost doubled in the last few years. Couples who spend decades investing and saving together experience higher stakes and more severe financial consequences of divorce.
Such 'gray' divorces can last months, depending on the willingness of both parties to cooperate. While the process of separating from someone you thought you would grow old with can be painful on its own, dividing the marital assets can make the process even more challenging.
Most spouses who consult divorce attorneys like David R. Phillips tend to have very different ideas of what property belongs to whom. Here are a few ways to mitigate or reduce the negative financial consequences of divorce.
#1- Partner with a Competent Divorce Attorney
As a competent divorce lawyer, David R. Phillips always emphasizes collaborative divorce and mediation over lawsuits. Both partners usually fare better in structured procedures where they can negotiate the solutions for various disputes, including financial decisions, instead of leaving the decision in the hands of the jury.
If you have reached our law firm through referrals, recommendations, reviews, or expertise and proven track records, schedule a consultation with us to experience the benefits of teaming up with a reliable divorce attorney.
#2- Open Accounts in Your Own Name
Non-working spouses should establish their own credit history from the start to prepare for times when they may need a mortgage or car loan. If someone already has a history on file, divorce attorneys recommend closing or freezing credit card and joint bank accounts to prevent being held responsible for shopping sprees by your soon-to-be ex-spouse. Insurance policies and other similar things should also be altered to reflect the new solo status.
#3- Take Inventory of Debts and Assets
Your attorney can guide you with a full disclosure for all individually and jointly owned assets to help you gain an idea of where the finances are and where they go. Keep copies for safekeeping of credit card accounts, loans, business debts, tax returns, wills and trusts, insurance, and home equity lines. Also, try to get a handle on all non-marital assets as well, such as inheritances, gifts, and other property that belong to one spouse only.
#4- Freeze Joint Bank Accounts
You are on the hook for all debts your ex-partner racks up on joint bank accounts, even if you have separated. Rather than keeping joint credit cards based on verbal agreements to split debts and pay the share, consider closing the joint account and opening separate ones. This way, the ex-spouse's financial troubles will no longer concern you.
If the joint account has money, transfer half the funds into a new account. You must also reroute any direct deposits to this new account. Finances often cause a lot of drama during divorce, especially when one takes them from the joint bank account, leaving the other spouse without access to their own savings.
#5- Know the State Laws
Many states mandate an equal division of all marital possessions, no matter who purchased the property. Prenuptial or postnuptial agreements can also impact financial and debt-related decisions. Research the laws and consult a reliable family law attorney who can walk you through the state laws relevant to your divorce proceedings.
David R. Phillips is not only well-versed in all Indiana state laws but will also help separate property fairly. If your ex-spouse tries to take advantage of the situation, our divorce attorney can help you reword the settlement accordingly so you can gain access to funds for legal and living expenses.
We also assist clients with alimony, child custody and support, parenting time, grandparents' visitation rights, and aspects related to family law lawsuits. Our family law attorney goes above and beyond to protect your assets and safeguard your financial future.
Call now if you need to speak to our criminal defense lawyer, expungement lawyer, DUI or OWI lawyer, or family law attorney for affordable and competent legal representation.