There are many issues to consider when divorcing. Among the challenges is the division of marital property and debt. Assets such as bank accounts, real estate or retirement accounts have to be split in a fair and equitable way, and this process can require significant planning and negotiations.
A common question that comes up, especially in high-conflict divorces, is what to do with the accounts the spouses share. The last thing a person wants is his or her spouse running up high credit card charges on a card that has both spouses’ names on it. So what precautionary steps should divorcing parties take in the short term after they decide to end their marriage?
First, you will want to let the credit card company know what the situation is. As far as they are concerned, any charges your soon-to-be-ex makes on joint credit cards will also be your responsibility unless you put the kibosh on his or her spending. The card company can stop any attempted charges your ex tries to make.
Next, notify your bank. Each party should set up his or her own checking and savings accounts. Make sure that your directly deposited paycheck goes into the right account and keep good records of all expenditures moving forward.
Since many divorcing couples don’t stop sharing expenses until after the divorce is finalized, it may also be an appropriate move to open an escrow account with your spouse. An escrow account is contractual, and the parties to the account agree upon the conditions of the transactions.
This type of account may be especially helpful if the divorcing spouses have children together, and money from both parties has to be used in caring for the kids. With escrow accounts, a third party can disburse the money according to the conditions set up by the spouses. The account can be closed once the divorce is finalized.
Knowing as much as you can about the divorce process can help you prepare for negotiations that will likely affect your financial and family life for many years. Securing the professional guidance of an experienced family law attorney can establish the best possible plan for ending a marriage. Contact the Law Offices of Andrew C. Ladd for help today.
