Divorce can be an emotional and lengthy process. Divorce can also be challenging for many Alabama spouses when finances are at stake. There are ways soon-to-be ex-spouses can safeguard their finances.
One step is to start closing jointly-held bank and credit card accounts. After closing these accounts, spouses may open up their own bank accounts solely in their name in order to have control over their credit. Furthermore, each spouse usually has personal information on the other, and it may be wise to enroll in a credit monitoring service to make sure the ex is not using their information. Credit monitoring services update scores on a monthly basis and can help pinpoint signs of possible identity theft.
Another step is to become knowledgeable about accounts. This can be done by reviewing previous income tax filings and other financial records to show where money is being held. In addition, it’s beneficial to have knowledge of where spouses stand financially, including assets and liabilities. Furthermore, it may be a wise decision to remove the spouse as beneficiary from life insurance policies and retirement accounts.
Being involved in a divorce is an enormous obstacle to overcome for many Alabama spouses. While it can be an advantage for spouses to keep their marriage together, it can be even more of an advantage to have a piece of mind after divorce. This is particularly true for marriages where a spouse gets into a battle to obtain respect. When a conclusion has been reached for the marriage to end, one may want to gain as much knowledge as possible and protect their finances.
Source: ABC News, “How to Protect Your Finances in a Divorce”, Aj Smith, March 31, 2014