Asset Protection and Divorce:
10 Things You Should Do Before Filing Your Divorce
10 Things You Should Do Before Filing Your Divorce
1. Keep copies of important financial documents in a secure place that you can get to quickly and easily. Include copies of financial papers, tax returns, insurance policies, bank statements, salaries and benefits.
2. Search your home and security deposit boxed for financial information. You need to know how many accounts you both have, where they are located, what the account numbers are, and the current balance. Look for evidence of bank accounts, brokerage accounts, trusts, life insurance policies, and stock certificates.
3. If you have joint credit cards, terminate them or reduce the limit.
4. If you don't have any credit cards in your own name, establish credit in your name alone.
5. If you have a joint investment account advise the financial institution to freeze the account unless both parties are present or present a notarized approval signed by both parties to withdraw funds.
6. If you don't already have one, open a bank account in your own name at a new bank separate and apart from the bank that holds a joint account with your spouse. Prepare for your separation and divorce by placing money into this account on a regular basis, it will give you financial freedom when you need it most.
7. Keep an inheritance separate, in a separate account in your name alone and do not co-mingle the inheritance with marital funds.
8. Save receipts and keep an expense journal. Keep a current inventory of items of value in your home, take photos and get items appraised. Make sure you keep track of any improvements made to property both before and after you separate.
9. Prepare a support structure of close trustworthy friends, a safe place to go if you need to get away or just need to relax.
10. Consult a family law attorney and find out what are your legal rights and responsibilities. For example, it will be important to learn more about how your state’s laws regarding separation will impact child support, spousal support, real property, and any debts incurred before and after separation.
