10 Things To Do Pre-Divorce To Avoid Bankruptcy

Divorce usually the largest single financial transaction of people’s lives. The following tips offer assistance on how to go about it in the most effective and non-debilitating manner though the most helpful tip is obtaining a divorce lawyer.

1. Cancel ALL joint credit cards

Even if a court rules that you aren’t responsible for charges made by your spouse after you separate, the credit card company can hold you responsible while things are sorted. Better safe than sorry, they say.

2. Use joint funds to pay family expenses

Begin your divorce with these expenses already paid, rather than arguing with your spouse about who should pay them later. This includes automobile repair, clothing, and home necessities.

3. Start what you wish to continue

Judges usually enforce the status quo, so go wild: get braces for the kids, go to school, or receive medical treatments.

4. Open a personal post office box

Confidential information can be sent to you there, and it provides a stable mailing address as your life changes.

5. Open up a separate bank account. 

Accumulate money so you can get through the divorce. However, you are required to eventually tell your soon-to-be ex-spouse about the funds.

6. Apply for credit cards in your own name. 

These cards allow you to establish credit in your own name, to use when you cancel your joint accounts, and during the divorce.

7. For fast cash, borrow from parents, a credit union, or your 401 (k) 

The cost of these sources anvil credit card interest rates

8. Copy ALL papers that do with money now so you won’t have to subpoena them later.

This includes all tax returns, loan applications, wills, trusts, financial statements, banking information, loan documents, credit card statements, deeds to real property, car registration, insurance inventories, and all insurance policies.

9. Gather financial information

Even if you are unsure of divorce, knowing your finances will make you a better partner if the two of you stay together, and will help you get the best settlement possible if you don’t.

10. Copy records that you can use to trace your separate property, such as an inheritance.

If you can document them, the assets remain yours.

For more information, check out: divorce 360