The divorce process affects finances regardless of the socio-economic class of the parties involved. While most people in Pennsylvania understand the need to assess their finances as a divorce begins, some may not know exactly what steps they should take to safeguard their finances during a divorce. These steps go beyond securing alimony or splitting what is in a joint account.
Credit cards need immediate attention. Debts that one party accrues can easily be the responsibility of both parties if the divorce is still unfolding. All cards should be closed. Once this is done, both parties should open up new accounts on their own so as to start the process of building good credit for future financial matters.
Another financial move aside from splitting what is in accounts relates to beneficiaries. Life insurance and lucrative retirement accounts might list the soon-to-be ex-spouse as the beneficiary. Changing this on every policy is vital and should not be put off. However, it might be wise to have a policy on an ex-spouse if alimony and child support are needed as this can ensure some form of on-going payment.
When a divorce is in the process of unfolding, Pennsylvania residents may get wrapped up in the dollars and cents that are right in front of them each day, such as checking and savings accounts. However, most people have financial holdings that are much more complicated and intertwined. Addressing these holdings and acting quickly can ensure a fair split and secure resolutions that are in the best interests of both parties as they try to move forward after a split.
Source: theadvertiser.com, “Landing on your feet financially after divorce“, Mary Fox Luquette, Dec. 12, 2015