While couples in Connecticut and elsewhere may face challenges as they go through a divorce, it is possible for them to leave the situation while still being financially intact. By being conscientious while working through a division of property, a person can do damage control ahead of time and avoid conflict.
One of the most important steps to take during this time is to acquire education about the couple’s financial situation. It is common for one spouse to handle the finances while the other is relatively uninformed. These spouses should make a list of every account that they have and the value of each. This information may be available in files, with an accountant, in joint tax returns or in a savings deposit box. Another important step to take is to close joint accounts. Because debt acquired during the marriage may be split between both spouses, closing the accounts prevents any further debt from accruing. Credit card accounts that are in both spouses’ names should be closed and individual accounts should be opened.
Insurance is also a critical issue. If a spouse was previously covered by the other spouse’s policy, an individual plan should be procured. Changing the beneficiary designation on a life insurance policy may also be necessary and advisable.
Someone contemplating the termination of a marriage may wish to speak with an attorney who has experience in divorce matters. The attorney may be able to provide advice regarding ways to obtain pertinent financial information that will enable the negotiation and preparation of a property division agreement. The attorney may also be able to advise the client with respect to spousal support.
Source: Fox Business, “5 Money Moves to Make During a Divorce“, Holly Johnson, October 08, 2013
