Protect your finances when you go through a divorce

March 06, 2013 (Press-News.org) Protect your finances when you go through a divorce

Article provided by Joseph Indelicato, Jr., P.C.
Visit us at http://www.indelicato.com/

Financial and marital problems can be difficult to deal with, especially when you are facing both of these issues at the same time. During a divorce, many people deal with a great deal of stress that can sometimes lead to poor decision-making. The following tips can help you deal with money matters as you split from your spouse, and help ensure that your finances will be in order post-divorce.

Financially protecting your children after a divorce

It is often hard enough to make ends meet when both parents are living under the same roof. When parents separate, it can be even more challenging to take care of a child while maintaining two households. In order to make it easier, parents should work together to come to an agreement about paying for their children's expenses, such as day-to-day necessities like food and clothing, as well as things like school supplies and extracurricular activities. The more parents can agree on these issues, the easier it will be for the children.

In addition, having a life insurance policy that names your children as the beneficiaries can go a long way toward ensuring that they are financially protected if something happens to you or your ex-spouse. Generally, the parent who is paying child support will purchase the life insurance policy and name the child as the beneficiary.

Also, parents should discuss medical insurance for the child, deciding whose policy will cover the child and who will pay any out-of-pocket expenses related to the child's medical care.

Other ways to protect finances after a divorce

Establish credit. Even the most responsible person may be tempted to behave badly during a divorce. If you have joint credit cards with your ex, it is best to cancel those accounts and work on establishing your own credit, so that your ex cannot run up the bill and leave you responsible for paying it. If you have no credit history, the easiest way to establish credit is through a secured credit card.

Deal with bank accounts. Just like credit cards, if you have joint bank accounts with your ex, it is best to cancel them. You can use any money that rightfully belongs to you to set up your own personal accounts.

Think about taxes. It is not uncommon for ex-spouses to liquidate their assets in order to fulfill the obligations set forth in their settlement agreement. But, this can lead to tax ramifications. Be sure to find out what your obligations will be so that you do not start your post-divorce life with tax problems.

If you are going through a divorce

The financial matters that you must deal with as you go through divorce can be complicated. It is a good idea to get a legal advocate on your side, so that you can ensure that you are getting everything that you deserve in a divorce settlement. Contact an experienced family law attorney who can help you with these matters, as well as issues related to the care of your child.