How Do I Protect Myself Financially In A Divorce?

You can protect your financial future during the divorce process by doing the following:

Establish your separation legally.
Make an inventory of all marital assets and debts.
Open a separate bank account.
Hire a good divorce lawyer.
Calculate the alimony and child support receivable/payable.
Watch over any changes made in the marital assets.
Make sure that the alimony payer has life and disability insurance.
Update the beneficiaries of your financial assets.

1. Establish Your Separation Legally

The income you generate and the assets that you accumulate after separation are likely to be regarded as your separate property, and not commingled with the marital property. Property and income accumulated and earned after separation will most likely not be distributed to the other spouse.

Therefore, when you separate from your spouse, you need to legally establish the separation. Some states allow you to file a petition for legal separation. In states that don’t, you need to consult your divorce attorney. He/she will either create a document or some other record that records and proves your separation.

2. Make An Inventory Of All Marital Assets And Debts

Make a list of the assets that are marital property – and just in case, note down the separate property owned by each spouse. Collect copies of property deeds, financial asset ownership documents, bank account statements, 401(k) papers, ESOP offers, retirement fund investment statements, art collection details, and title deeds of other intangible but valuable assets, as well as documents related to liabilities like credit card bills, mortgage deed/s, and any other loans.

Make sure that you have inventoried every asset and liability. This list will help your lawyer figure out whether your spouse has hidden any assets or fraudulently pocketed any marital asset that should rightfully be shared with you (usually on a 50/50 basis). Moreover, when you know how many assets you will own along with their valuation, and how much debt you have to repay after the divorce, you will be able to plan your financial future efficiently.

3. Open A Separate Bank Account

If you have joint bank accounts, consider opening a solo, separate savings or checking account. If you are on friendly terms with your ex-spouse, you may discuss your new accounts with him/her. Also, you may withdraw your share of funds from a joint account so long you are transparent about it with the other spouse, but check with an attorney before you do this to be absolutely sure. If you are confused about how to go about it or how much to withdraw, consult your family law attorney.

You need a separate bank account to manage your finances after divorce. Don’t delay opening it because if your spouse withdraws funds or closes down the joint accounts, you may be left in the lurch.

4. Hire A Quality Divorce Lawyer

You need to hire an experienced and reputed law firm that is focused on resolving family law matters. If you work with a rookie or general practice firm, chances are that you will not get your rightful share of the marital property, alimony, and custodial arrangement.

Your attorney can help you get temporary restraining orders, stop your spouse from misappropriating the marital assets, free up money for your day-to-day expenses, and investigate if your spouse has already alienated any marital asset or has obtained considerable debt without consulting you.

5. Calculate The Alimony And Child Support

The courts apply a formula to calculate alimony and ensure that the alimony payable/receivable is fair to both spouses. The alimony awarded is such that it allows both spouses to maintain as far as possible their pre-divorce standard of living. You need to know how much alimony you have to receive or pay so that you can plan your monthly budget in the post-divorce period.

The same logic holds for child support. If you are the receiver, do not forget to include the expenses for extracurricular activities and other hobbies your children indulge in. Plus, as children grow, their needs evolve and if you have hired a good divorce lawyer, he/she will ensure that child support covers all necessary expenses of bringing the child up. Remember that child support is payable until the child is emancipated or self-supporting, or by the time he/she earns a degree. Note that emancipation laws vary per state.

6. Watch Over The Marital Assets

Maintain your control over your marital assets if they are in joint names. Do not relinquish your ownership.

If the assets are in the name of your spouse, speak to your divorce attorney about it, hand over the list of assets you have made, and if you suspect your spouse will sell the marital assets or defraud you, ask the lawyer to obtain a temporary restraining order that prohibits your spouse from doing so.

7. Make Sure That The Alimony Payer Is Insured

If you are the alimony recipient, ensure that your ex-spouse is insured even if you are not dependent on the alimony for your living expenses. If the alimony payer passes away or becomes disabled it can severely compromise your standard of living, and obviously, you don’t want that to happen. Ensure that the alimony-paying spouse has life and disability insurance policies, which protect you in case of an eventuality.

8. Update The Beneficiaries Of Financial Assets

Finally, change the names of the beneficiaries of your financial assets and will – from your ex-spouse to your children, sibling, or parents – or whomever you desire.

Taking these steps will help you protect your finances and learn how your financial life will be after divorce. Once you get control over your finances, you will be able to better plan your future.

Excellent

Brown Family Law

Based on 938 reviews

See all reviews

bjenness79

I highly recommend Nathaniel Garrabrandt and Brown Family Law. If you are going through a divorce and your parental rights are being falsely challenged they are a great option. Nathaniel and Brown family law are professional, very knowledgeable, and know how to navigate within the broken and biased Utah family law court system. They were highly communicative throughout the process. They can potentially save you a lot of time and money if lawfare is being waged against you.

Barbara Thayer

Could not help with my case but referred me to someone who could .

Trisha Caldwell

Clay Randle was great and I would highly recommend him for an attorney.

Danny Caine

Russell was my Lawyer at Brown Family Law. He helped me through my multiple cases after my divorce. He was very responsive whenever I had questions about my cases or understanding how the law works. Russell was respectful of how he used my retainer and always gave me good sound advice even if it wasn’t what I wanted to hear. I highly recommend his services if you’re looking for a top notch Family lawyer! 5 out of 5 stars ⭐️⭐️⭐️⭐️⭐️

Joseph Hutto

I recently engaged Andrew to review my divorce decree that was finalized in another state. He gave me excellent advice. I did not feel pressured to proceed one way or another. Instead, he gave me very reasonable scenarios to consider and allowed me to proceed down the path that felt most comfortable to me.

Natalie Warner

Clay Randle with Brown Family Law was excellent! I love the way the procedures with this company are organized. The attorney calls every Friday to check in with you so there’s no phone tag. Questions are answered very timely every week. Clay was very prompt in responding to emails. He was also great to “read the room” or the situation rather. Throughout the divorce, where grace was extended and healthy negotiation prevailed, he appeared to navigate the process in a calm and skillful way. I could see how he definitely had the capacity to respond in a more contentious, emotionally charged way if needed. He encouraged healthy boundaries with the splitting of assets and he understood both sides of what could happen if asking for a specific thing in the divorce. During a painful situation, Clay was able to crack some (tasteful) jokes and tried to keep a heavy situation feel a little less heavy. Couples seeking a divorce would be wise to choose Brown Family Law. They will be in great hands.

Dusty Boyer

I wholeheartedly recommend Andrew Christensen to anyone facing a divorce or custody battle. His passion and thoroughness as a divorce and custody attorney are truly exceptional. You’d think his name was on the firm’s door with the way he handles business—pouring his heart and expertise into every detail, even though it’s not his firm! From our first meeting, Andrew went far beyond a typical consultation, taking the time to listen, understand my situation, and craft a strategy that led to a successful outcome in my custody case. His dedication, compassion, and meticulous approach make him stand out. If you need an attorney who will fight for you like it’s personal, Andrew is the one to call!

Natalie Lewis

I absolutely believe that Brown Family Law is the best divorce attorney law firm in Utah. Attorney Ray Hingson did a fantastic job for me in a complicated divorce. He was there to guide me through the entire process. Ray touched base with me every week AND every time I called with worries or concerns. He handled things confidently and professionally. He took time to meet with me and explain everything so I could understand it. I felt like he really cared and wanted to do his best for me. His paralegal, Carren Leavitt, was also extremely helpful. All I had to do was pick up the phone and call her and she arranged a time for Ray to call me right back. She was always prompt and caring. I couldn't be happier!