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How divorce can affect you financially
The biggest financial considerations center on dividing the assets. Because not all assets are created the same, you need solid information when deciding how to split everything. The consequences of not understanding and finding out when it is too late can be financially and emotionally devastating! To make sure that you get what you deserve, check out the Financial Custody: You, Your Money, and Divorce Another very important financial consideration in your divorce is to find out what your credit rating is. You should get a credit report now to determine if there are any blemishes that will hinder your future ability to borrow money. If there are mistakes on your credit file, or if a reported debt has been paid off, contact the reporting agency to rectify the situation. One service that I like is Equifax. Equifax has been providing value-added information solutions to businesses and consumers for over 107 years. Because they have been around, you can count on them to be around. You can get your credit report online, and have your credit monitored as well. Get Your Equifax Credit Report Now! If you have a history of irregular payments on outstanding debts, you should contact the individual companies to see if they will lower the payments. Once you have made regular payment for six months, they should remove the blemish from your report. Once you have determined your credit history, a wise financial consideration is to establish credit in your own name. Blue from American Express® Another financial consideration is to establish your own bank account. If your paycheck is automatically deposited to a joint account, have it switched to an individual account in your name only. You may also want to take your name off joint accounts, since you can be held liable if your spouse over-draws on that account. If it seems likely that your spouse will clean out all the accounts, take your half and put it in your own account. If he is a signer on the children’s accounts, you also need to have his name removed, or have the money transferred to a different account.
If you are separated, as a financial consideration, you can file your taxes separately as “head of household”. Detail who gets to claim the children as dependents in your legal separation. Keep this deduction if at all possible; it can mean money in your pocket with the earned income credit. If you are claiming the children as your dependents, make sure that your husband doesn’t also try to claim them. The last thing you need is an IRS audit Your insurance coverage also needs to reflect your change in status. If both names are on a policy, and your spouse has an uncovered liability, you can be held responsible. The best financial consideration is to take your husbands name off the policy, or get your own policy (and take your name off his). If you don't already have an insurance provider, you can shop for the best insurance rates online at Netquote.com check out the My Parenting Portal swicki at eurekster.com To Return to Divorce and Money, Click Here
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. This book explains in detail the property distribution aspects of divorce and separation. It focuses on the rights each spouse has under certain laws, situations, and circumstances, and how the division of the property will be decided by the court or through negotiation.