Money Matters

Money Matters

For some odd reason, most humans, especially women, have a reflex reaction to tragedies like divorce: They go shopping. While therapeutic outlets are recommended, this doesn't mean local clothing outlets. Every year, thousands of men and women are left in dire financial straits as the result of a divorce. Before you go buy that new breadmaker or flat-screen television, take a look at these tips to help prevent you from ending up financially injured:

Know Your Partnership's Value

You need to have a clear understanding of your partnership's total assets and debts. This means reviewing all relevant documents related to credit, getting property value assessed and understanding all soft assets like pension plans, stock options and insurance plans. The more of this work you do before meeting with a lawyer, the more time and money you will save. Click here for information on how to find hidden assets.

Protect Your Credit

Until your partnership is legally dissolved, you and your partner share responsibility for your household's debt. Immediately close any credit cards held in both your names. If you don't have an individual checking account or credit cards in your name, start applying for them now to establish your own personal credit.

Know the Spectrum of Possibilities

Most states use equitable distribution laws when dividing assets. This means that a judge decides. This leaves a lot of room for interpretation, and if you and your partner don't agree on a settlement, there is little way to predict what the outcome might be. However, talk to your lawyer about the range of possibilities. Look at your future should the worst case scenario happen, and begin making lifestyle changes to prepare yourself for any situation. Evaluate your income sources and begin planning for ways to expand your personal revenue. Start budgeting and look for places you can cut expenses until the divorce process is completed and you have more security.

Learn New Skills

If you weren't very involved with your partnership's financial transactions, then it is important you learn how to perform these tasks now. Balancing the checkbook, paying bills, managing stock portfolios -- these activities are now your individual responsibility and you need to do them well.