Protecting your finances in divorce

Clearly, a divorce brings a lot of change. Amidst all of the personal, relationship and family adjustments, many divorcing couples forget about one significant consideration: their bank accounts. As the family changes in divorce, so does its financial situation. It is important that divorcing couples in Las Vegas remain proactive with their finances, ensuring that the emotions of divorce do not affect their money or other assets.

First and foremost, divorcing couples need to be aware of their new financial situation, and they must be aware about what they are buying and why they are buying it. As the husband and wife split their finances, one or both may find that they have less disposable income than they are used to. If this is the case, they can’t spend as much as they did when they were married. Doing so is an easy way to rack up credit card debt, which can be damaging in the long run.

In addition, always be conscious about the reasons for your spending. Are you spending more on the children in an attempt to buy their affection? Are you contemplating plastic surgery to make yourself feel better after an emotionally damaging split? Are you charging up the credit cards in search of revenge on your spouse? These are all unproductive and potentially harmful ways to spend money, especially if you are operating under a new, lower budget.

Finally, do not expect that your spouse will behave as he or she has agreed or as the court has ordered. Credit card companies and other creditors care little about the terms of a divorce decree, so if your spouse doesn’t pay a bill as he or she has agreed to do, creditors will come looking for you. This could possibly damage your credit and have long-term implications.

Source: Fox Business, “Seven Big Post-Divorce Money Mistakes,” Erica Sandberg, 9 June 2011