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How to solidify your finances after a divorce

On Behalf of | Oct 5, 2021 | Divorce | 0 comments

A divorce will likely have a profound impact on your finances, both now and in the future. Therefore, it’s important to do whatever you can to secure your financial future before submitting marriage dissolution paperwork in Colorado. It’s also a good idea to be proactive if you think that your spouse will eventually seek to end your marriage.

Take your name off any joint accounts you won’t be using

Generally speaking, you are entitled to use up to half of the available funds in a joint bank account to pay expenses related to a divorce. However, if you have a separate account with sufficient funds to pay divorce expenses, it may be worthwhile to use that money instead. Doing so will allow you to remove your name from any bank or brokerage accounts that you currently share with your spouse.

The fewer accounts that you share with your current partner, the less likely it is that you’ll be responsible for any debts that he or she accrues during the divorce process. It’s worth noting that you’ll likely be entitled to half the money in any account established during your marriage even if you take your name off it.

Establish credit in your own name

After a divorce, you will need to obtain credit cards, personal loans or other forms of credit based on your own borrower profile. As a general rule, it’s much easier to obtain credit if you can demonstrate a prior ability to manage your money. Therefore, it may be in your best interest to get a secured credit card, take out a personal loan or obtain an auto loan while divorce proceedings are ongoing, assuming that you can do so.

If you are getting divorced, it’s important to make sure that you are financially ready to do so. Ideally, you’ll keep a close eye on your credit report, bank balances and other important accounts before and during the divorce process. It may also be important to keep track of accounts after the marriage ends.