Many people in Carlsbad are searching for financial tips for those who are considering a divorce. What impact will your divorce have upon your personal finances? How can you make the best of this situation, and what actions can you take now to be prepared?
Once you have filed for or been served papers in a divorce you should consider immediately opening a new bank account in your name alone. You should consider doing this outside of the bank where your joint marital funds are located. Ask your divorce attorney at Burke & Domercq about redirecting your income to this account versus continuing with a joint account.
It is important to note the Automatic Temporary Restraining Orders (ATROs) which are issued at the beginning of any divorce. These contain important limitations on all finances for you individually and on the “community” of you and your former spouse.
Many people wish to close joint accounts and credit cards as soon as possible to prevent the other spouse from draining an account or running up a credit card. The Courts generally see through this activity and many former spouses are ordered to reimburse the “community” for the funds they’ve misappropriated. Failure to do so results in deduction of the amounts in question from their portion of community property.
Organizing all of your financial records is one of the best financial tips for those who are considering a divorce. It is best to compile three to five years of statements for all bank accounts, investment accounts, retirement accounts, business records including all corporate documents (even if this relates to your spouse’s interest in a business), payroll stubs and information about real estate and vehicles. If you received an inheritance or a gift personally you should ask our attorneys about separating that into a different account.
Organize all of the personal property you owned before the marriage. Make a list of all the personal property you acquired together during the course of the marriage. These items will all be used in disclosures as well as the division of community property.
Finally, obtain a copy of your credit report. Make note of all accounts listed and look for information that is erroneous. Watch for any new accounts that may have been opened by your spouse and for existing accounts you may not have been aware of.
Many divorcing couples find it extremely challenging to carry the expense of two separate households during and after the divorce. Your finances and how you manage them are a crucial portion of your overall divorce strategy.
We invite you to contact us or call 760-434-3330 to schedule an appointment with one of our experienced Carlsbad Certified Family Law Specialists. We provide valuable financial tips for those who are considering a divorce in North County or North County San Diego.