Planning For A Divorce After The Holidays

November 22, 2012

Planning for a divorce after the holidays

The stress of the holiday season, along with the chance for a fresh start at the beginning of the year, makes January a popular time to divorce. Often married couples will put family ahead of personal needs until after the holiday season is over. However, if divorce is in the future, preparing for divorce can begin before the actual filing takes place in January. Planning ahead can make the process easier on everyone and protect your financial assets for the new year. While the steps below are good practice for any time of the year, a month or two of financial planning and diligence during the holiday season can pay off in the long run.

Get documents

Asset division in a complex divorce begins with compiling paperwork. The end of the year is a good time to get credit card balance statements, bank account statements and other financial information. These documents will be important in a divorce proceeding. Do not keep the financial documents in the house, but instead take them to a safety deposit box or a trusted friend or family member. Your financial well-being can be protected by immediately obtaining such documents.

In addition, run a credit score to ensure you are aware of all debts in your name. Unknown credit card balances or personal loans in the name of both ex-spouses can be a shock post-divorce. Just because you are divorced does not mean credit card companies or other lenders cannot go after you. In fact, because lenders are considered third parties to a divorce proceeding, even if you obtain a promise in the divorce agreement to assign all the joint debt to your ex, a lender is still legally free to go after you for payment.

Start creating a separate financial life

Immediately open new checking and savings accounts. Start using these accounts to prepare for legal and financial planning fees as well as life post-divorce. If obtaining a credit card, do not include the name of your spouse on the card.

Obtaining a PO Box is a good way to receive the account statements, legal documents and other necessary paperwork. By keeping these important documents out of the marital home, you are providing yourself with security and beginning your new financial life.

Other changes

Other financial changes include changing your life insurance beneficiaries and updating your will and estate planning documents. Most states, including Pennsylvania, allow a spouse to opt for an Elective Share upon the death of one spouse, so it is not possible to completely disinherit a spouse even with impeccable estate planning. Still, if your estate plan currently leaves everything to your spouse, it is worth it to change the estate plan to provide as much as you can for your children rather than leave everything to a soon-to-be ex-spouse.

Speak to a family law attorney

Every divorce is as unique as the situation of the parties. If you are considering divorce during or after the upcoming holiday season, contact an experienced divorce lawyer to discuss your legal and financial options.

Article provided by Montgomery & Zimmerer, L.L.C.
Visit us at http://www.mzlegal.com