Ohio couples benefit from planning their post-divorce financial future. Preparation lets you understand your current financial position and minimizes the chance for your spouse to run up debt in your name or damage your credit. Once one spouse files for divorce, the court places an automatic restraining order that prevents spouses from attempting to ruin, bankrupt their spouse or abscond with marital funds.
Preparing your finances for a divorce involves compiling a list of all assets held in your name. Once the divorce has been filed, neither spouse can add new debt to the other and spending activity should be monitored. Four crucial steps will help you prepare your finances for divorce.
Separate bank accounts
Opening your checking and credit accounts helps you separate your funds from your spouse and build your credit rating. Divorce can also affect the tax status of divorcing couples. Transferring direct deposits to your separate account is wise. If you still have joint obligations to a shared bank account, then it’s best to ensure the amounts you’re responsible for remain in the account. It’s a good idea to close all joint accounts within the law’s guidelines as soon as possible.
Resolving shared debt, tracking accounts and credit
The court decides how assets and liabilities are divided. Separating assets makes the divorce process less stressful. Some debts might get assigned to you even if your spouse created them. For example, if your spouse finances a car, but you’re the primary driver, you might have to pay the outstanding balance.
In amicable divorces, spouses can agree to resolve debt equitably before the court intervenes. Pulling a copy of your and your spouse’s credit report, tracking all transactions and monitoring your accounts is the smartest way to be financially prepared before a divorce.