Protect Your Finances From A Divorce
March 26, 2009
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Divorce or separation can be a scary time in anyone’s life but it becomes even more nightmarish during an economic crisis. With about 20 percent of divorce lawyers across the country seeing an increase in their business during this economic slump, according to the American Academy of Matrimonial Lawyers, and most seeing little or no change, a staggering number of couples continue to divorce.
Top attorney Sheilah Vance, author of Land Mines, had handled her fair share of divorce cases but was not prepared when it was her turn. While it may not be a topic most married women want to think about, with the divorce rate at 50 percent, it is an unfortunate reality. In response to this trend, Vance offers seven tips every married woman should know to protect themselves financially in the event of a divorce.
- Your husband can always change his mind.
- If he does, your life can change in an instant.
- Don’t think divorce can’t happen to you.
- Length of marriage does not insulate you.
- Know your family’s finances inside and out.
- Pay the bills.
- Keep a record of the name and address of every savings, checking, retirement and investment account. Even if you don’t open up the mail, write down the information in the return address.
- Keep a record of all income and expenses.
- If your husband ever mentions separation or divorce to you, put your plan in place because you are playing catch-up.
- He’s probably already taken steps to protect his finances.
- Try to save your marriage if you want to, but protect yourself just in case.
- Protect your credit.
- Keep your credit rating up.
- If you find yourself in a divorce, you will need good credit to rent an apartment, buy a new home, car, or any of the things that you will need when setting up a new household.
- You must have your own money somewhere.
- Your husband probably does.
- If you are facing a divorce, you will need money for attorney’s fees.
- Encourage your husband to put as much money as possible into his company retirement plan.
- This money leaves a paper trail and generally cannot be hidden.
- Part of this money will be yours in the property settlement, and it may be the only pot of money available to you because he can spend down or hide other accounts.
- The only thing certain about alimony is that it’s certain to end.
- Many women think they will get alimony but a lot won’t.
- Alimony is discretionary, awarded by the court or in a settlement between parties.
- Keep your resume and skills up to date, because if you have not been working outside of the home, you will most likely have to do so after the divorce.
- Alimony will end; it is only for a limited number of years.
