Divorce is never an easy thing to accept and separating the finances of a soon to be divorced couple is not always easy. There are many things that are considered when couples are separating even with a pre-nuptial agreement. Most people find that divorcing and separating finances have to be dealt with separately and responsibly.
In most states, there are laws that have to be obeyed when separating the finances of divorcing couples. There are many things that have to be done together and things that have to be done separately. Those couples that follow the law don’t often have troubles reestablishing themselves financially. Couples that lose sight of the law and allow emotions to take over often find themselves devastated financially and emotionally.
A Healthy Financial Divorce
When couples have discussed and agreed upon divorce, there are steps that should be made together. Most couples that know the end of their relationship is near have the capacity to talk to one another and make decisions together without much fuss.
Unnecessary Expenses- As couples come to the decision to divorce, they should begin to cut unnecessary expenses. These expenses can be the weekly allowance for date night. This is an expense that isn’t going to be useful and the money can be repurposed in the finances.
Discuss Home Responsibilities- Married couples accumulate bills together. There is no way around the fact that bills such as mortgage or rent, utilities and insurances need to be paid. Couples that are divorcing should be able to agree to pay those bills or what to do with the property until the divorce is final. This is one of the biggest arguments that couples have when they are facing a divorce.
Discuss Credit Card Responsibilities- Couples that have joint credit cards are both responsible for the bill. Couples need to discuss the bills that were created with those credit cards and make the decision on if they will be kept or closed. Most divorce attorneys will advise their clients to close joint accounts and open individual accounts.
Bank Accounts- Most married couples have at least one shared bank account. This needs to be divided fairly among the two parties based on responsibilities and needs. For couples that have a nonworking spouse, they are still entitled to a portion of the money in all joint bank accounts.
Separating Joint Retirement Accounts- This is one of the most looked over items for divorcing couples. When couples are married, they sometimes combine their retirement funds. This is something that should be separated with the help of a professional to avoid unnecessary taxes, fees and penalties.
A Clean Split
Divorcing and separating from someone that promised forever can be a heart breaking time for people. It can be a time that many people have to learn to live with themselves and relearn to be dependent upon themselves.
While it can be trying, divorce doesn’t have to be messy and it doesn’t have to be filled with unnecessary drama. Responsibly discussing and separating finances is one way to make sure the divorce process is clean and as easy as possible under the circumstances.