How to Balance the Books After a Divorce
If you’ve tried to save your marriage, but it is no longer realistic, it might be better to consider a divorce, on the other hand, the decision might be simple and easy; either way, you don’t want a messy divorce that lands you in bad debt, make sure it’s orderly and sets you up for the future.
Consult with an experienced attorney regarding all legal issues.
Reach an agreement on bills
If you’ve decided to go your separate ways after a marriage, divorce is inevitable at some point, but the energy companies and the local authorities aren’t really interested in who did what; they have their own books to balance. Try to be mindful of this and ensure that your bills are paid.
Things might be a little more complicated, based on how amicable you are and who is staying in the property, but if you have responsibility for the property and don’t live there is still worth talking about your financial responsibilities as it could lead to bad debt and bad credit in future.
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Decide who stays and who leaves
Although it’s not an easy decision, it is a necessary one. After you have decided to part ways and move towards divorce, one of you has to leave the property and set up somewhere else; it’s the best way to start the healing process and to get your finances back to full health.
If the marital home is special to both of you, another option is to sell it and move out completely. In many ways, this is the best option because it creates closure for your relationship and protects you both from any financial hardships, but this might be difficult if children are involved.
Close joint bank accounts
Needless to say, the joint bank account you have with your ex-partner needs to be closed and your funds transferred into a new account that only you have access to. Chances are, the funds in your joint account were for household expenses, so now, they can give your new life a boost.
Closing joint bank accounts should be one of the first actions you carry out following the decisions to separate and move towards divorce. It accomplishes two things, firstly, it prevents any fraudulent withdrawals, and secondly, it provides some additional funds to help move on.
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Use an experienced divorce attorney
If you don’t have any children, the process of getting a divorce is relatively straightforward; of course, you still have to consult a divorce attorney and wait for the legal wheels to slowly turn, but it’s significantly easier than deciding which of you has full or partial custody.
A Divorce Attorney such as Hampton and Pigott can help you with every aspect of your divorce, from organizing the financial agreements and mortgage to building a custody case in your favor. When it comes to handling divorce well and getting what you deserve, there’s no room for error.
Start again from scratch
The phrase “starting from scratch” has negative connotations, but if you look at it from a different point of view, it means “possibility.” Starting from scratch is your chance to redefine your life and who you want to be in the wake of a divorce – think optimistically and get creative.
Good luck!
Ken Boyd
Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies
(email) ken@stltest.net
(website and blog) https://www.accountingaccidentally.com/