How do you Handle your Assets During a Divorce?

If you have been served with divorce papers or are just beginning the divorce process, you may not be sure about what you can and cannot do with your finances during the process. A divorce can be emotionally and finically difficult but it doesn’t have to be. Here is a summary of things you can do that can help make the process easier.

Close Joint Bank Accounts

A first steps is to close any joint bank accounts and set up your own individual banking. This does not mean you can clear out the money in the account on your own and close it. The money in the account is a part of the marital pot so perhaps you can reach an agreement to use it toward marital debts or reach an agreement on how to divide it pending the final hearing.

Identify Personal Assets

You likely have accounts that are your own and are not joint. Take some time to identify and gather statements for the accounts that in your name individually. These can be things such as IRA accounts, bank accounts, or investment accounts.

Identify Marital Assets

You also want to identify and gather statements for any joint accounts that you have. Examples of common joint accounts are home loans, utility bills, or car loans. You will want to come to an agreement on how to split up the bills during the divorce process and if you cannot agree you may have to go to a provisional hearing to deal with these preliminary issues. A tool that can help with this step is the financial declaration which helps you identify assets and debts. You can find a copy of a finial declaration here.

Make a Budget

Moving from two incomes to one can be difficult. It can also be difficult to plan on the increased living expenses involved in maintaining a home alone as well as the legal fees and expenses associated with the divorce. It is important to set up a budget and prepare for these changes.

Restrictions on Selling

The Court will usually place a restriction on selling marital assets without the consent of both parties or a court order. That does not mean that you cannot do things like sell your marital residence, you just need to have an agreement to sell it as well as an agreement on all the details around the sale such as listing price and realtor.