Financial Tips When Facing Divorce

 If you are going through a divorce, you may feel overwhelmed and not understand where to begin. Your life is facing significant changes, whether you initiated the divorce proceedings or found yourself blindsided by a sudden upheaval in your relationship. So, where should you start? Unsurprisingly, the first place you should focus your efforts is the finances.

Here are a few tips that can help you get your financial house in order as you proceed through the divorce process:

Conduct An Audit of All Financial Documents

You should immediately gather all financial records to which you have access, including bank account information, mortgage statements, credit card bills, wills, trusts, tax returns, etc. Make copies of all documents and then store them in a safe place. Ideally, you should save all financial documents to a “thumb drive” and give it to a trusted friend or family member so that your partner will not have access or any opportunity to sabotage them. You can also procure a safe deposit box to secure any original documents of financial importance.

Set Aside Funds for Legal and Divorce Fees

If your spouse controls your access to liquid funds, it can be difficult to secure the necessary monetary resources to hire competent legal representation. If divorce appears imminent, bear in mind that the spouse who provides the access is likely to cut off the money supply - a common tactic in contested divorces that often entices the other spouse to agree to unfavorable settlement terms.  Avoid this kind of financial pressure by being proactive (i.e., establish your own bank account at a separate financial institution for this purpose, but more on this to follow further below).

Obtain a Copy of Your Credit Report

There are many sites and services where you can obtain your credit report and provide you the opportunity to monitor it as well. By keeping an eye on your credit report, you’ll be able to see if your spouse is making charges on any joint credit cards or establishing new accounts in your names so that you or your lawyer can more readily identify how marital assets are being expended.

Establish New Accounts in Your Name

When opening a new bank account, you should not use the same bank or banks that holds your joint accounts or known separate accounts. Go to a different bank and open a new checking and savings account in your name only. Follow the advice of your attorney when it comes to how much of your joint funds you should withdraw and use that to establish your separate account. You may also consider opening a credit card in your own name if you do not already have one to establish a good credit record. You will eventually have to disclose the existence of any accounts you have established and demonstrate what the funds on deposit were used or charged for once the divorce proceeds; however, you will have taken the first step toward financial independence.

Open a Post Office Box

After you have acquired legal representation and opened new financial and credit accounts, you will begin to receive mail that you will wish to keep confidential. Open a post office box and provide yourself with peace-of-mind that your mail is being delivered somewhere that only you can access.

Changing Your Will & Medical Directives

Most states, including Texas, will not allow you to assign more than 50% of your marital assets to others until the divorce proceedings are finalized. However, you can change your will to direct that your 50% of the marital estate be allocated as you wish. More importantly, you have every right to immediately change or establish medical directives that prevent your spouse from making significant health-care decisions on your behalf. Once the divorce is finalized, you can completely revise your will to address those assets that were awarded to you. You should also update any beneficiary forms for all financial accounts, retirement accounts and life insurance policies once the divorce is concluded.

Completing these steps will aid you as you navigate the divorce process so that you can make thoughtful, reasoned decisions along the way in securing your financial future beyond divorce.

Jenkins & Kamin LLP is one of the most respected family law firms in Texas. The firm is noted for its “team” approach by pairing skilled attorneys, paralegals and other support staff to enhance each client’s experience in difficult life transitions.

In addition to the “team” approach, Jenkins & Kamin, LLP strives to personalize case strategies for each individual client, including identification of every particular legal issue and effective explanation of the law with respect to those issues.  Jenkins & Kamin, LLP endeavors to achieve a resolution that is appropriate for each client, while aggressively advocating on their behalf when necessary. Having a dedicated and experienced team working with you in any family law matter is of utmost importance to achieve the best result possible.

Jenkins & Kamin LLP represents clients in the following aspects of family law practice: Marital Property Agreements, Divorce, Complex Property Issues, Child Custody & Visitation, Child Support, Parentage, Modifications, Family Law Appeals and Dispute Resolution Alternatives. To learn more about the firm, visit www.jenkinskamin.com or contact one of our offices in the greater Houston area.