Tips For Protecting Your Finances During Divorce

Divorce is not a cheap process–in many Georgia divorce cases, it can cost upward of $11,000 or more when all is said and done and some can be a lot more costly. Furthermore, once divorce is complete, there will be necessary expenses and bills that were formerly jointly managed and are now your sole responsibility. If you are worried about your financial future as it pertains to divorce, the lawyers of Lunn Law have put together this blog so you can learn about your options and feel more confident about moving forward! 

Though divorce can come with expenses, you don’t need to go broke in order to pursue your freedom. Read on in this blog to discover a collection of helpful tips that won’t break the bank. 

Comply With Legal Guidelines

At the beginning of divorce, your first instinct might be to prevent your spouse from laying claim to your money by all means. You might want to hide money or assets that you do not want to be discovered in court. Do not do this. Not only is it illegal, it can end up costing you even more in the future.

Rather, you should receive direction from your lawyer about legal guidelines and you should do your best to comply with them. If there are particular accounts or assets that are important to you, your divorce lawyers can advise you on how best to legally protect them.

Inventory Your Assets

Knowing is half the battle. When you are getting divorced, many assets might be up for grabs. Having an accurate portrait of your finances and valuable assets can allow you to better understand your financial position and understand what you will need to try to retain throughout the divorce process.

Inventorying will also give you a more accurate portrait of what assets should be considered marital and which are your sole property. Having these assets properly inventoried ahead of time can save you time in the upcoming courtroom procedure and allow you to make a more accurate representation of your needs to the court. 

Separate Your Finances And Bank Accounts

One of the initial fears of anyone divorcing and worrying about their finances is the possibility that their spouse will empty their joint savings accounts and try to keep the money for themselves. In some cases, there are spouses who try to claim all the joint finances, and it’s possible that you have been on the receiving end of this duplicity. (If so, you can air this grievance in court and a judge is none too likely to be impressed with your spouse’s behavior.)

Whether or not this is a concern for you, one of the best initial moves you can make is to separate your finances. Chances are you already have your own private account but, if not, your best bet is to establish one right away. In order to start an evaluation of your finances, you can take out half of the joint funds that belong to you and secure them in your own private account. If and when you withdraw your money, be sure to inform your spouse so that you will not be falsely accused of malicious activity. Don’t forget, also, to have any direct deposits or withdrawals transferred to your sole account. 

If there are other sources of income that you and your spouse own jointly, you should bring them to the attention of your lawyer so you can begin the process of establishing sole ownership. 

Calculate Your Expenses And Prepare A Budget

Since you now have your assets inventoried and your money secured in your own bank account, you can begin your preparations. Divorce is not a cheap measure, and you will probably be responsible for your bills on your own now that you are no longer married. 

Evaluate your monthly costs as well as your current savings and the amount of your other sources of monthly income. Based on these numbers, you can decide how much you have to spend each month, how much you will earn, and how much you will have left over. Don’t forget to calculate your legal expenses and, eventually, any child support or alimony you will either pay or receive.

Monitor Your Credit Report

It is likely that your credit report will be affected by your divorce, whether it’s because you are closing joint bank accounts or joint credit lines or because you have lost your lease or because your spouse’s name is the one on your valuable assets or because you have to take out a loan to afford a new place to live or some other necessity. Whatever the reason, you might suffer a hit to your credit score. 

It’s important to monitor your credit score so you can have an accurate portrait of your credit worthiness so that you can take proactive measures to increase your score.

It is also worth monitoring your credit report if you feel your ex-spouse is not to be trusted. Though rare, a wronged spouse might try to take advantage of you by utilizing your credit for their own means. 

Factor In Taxes

Before you come to an agreement over which assets you will retain in your possession, you should thoroughly understand the tax implications of these assets. For example, if you are maintaining the residence, you will need to consider property taxes for the upcoming year and factor those into your budget. If you have elected to keep certain retirement accounts, you will need to understand if those are taxable. Even alimony has its own tax implications, so if you are receiving spousal support, you need to understand how much you are actually receiving because it is unlikely to be the full amount. 

Try Mediation

Finally, you can ease the cost of divorce by attempting to turn your contested divorce into an uncontested one. If there are aspects of the divorce you do not agree on, you and your spouse should try, if at all possible, to work toward a resolution through mediation and negotiation; this will save money in the long run compared to the costs of going to court. 

The benefit of an uncontested divorce is that it will take less time and the two of you will not have to go to court for a ruling. Therefore, it should also be less expensive. If you are comfortable with making some concessions in order to reach a mutual resolution with your spouse, you can use these tactics to reduce the time and compensation it will take to divorce, as well as keep your affairs private and away from the decisions of the courtroom. 

Lunn Law Can Help You Through All Your Divorce Needs

Lunn Law is a family law office whose experienced divorce lawyers offer compassionate guidance and effective legal strategies to get you what you need out of your divorce. Reach out to schedule an initial case assessment, and we will begin getting to know you and the goals you have for the life you wish to lead following your divorce.