Managing finances when going through the divorce process

| Nov 3, 2019 | Divorce

In addition to the emotional stress that Michigan couples face as they go through a divorce, they are likely to face some financial problems. However, there are steps that individuals can take to help them to better understand and maintain control of their finances and investments during this difficult process.

One major way that couples can avoid some financial fallout during the divorce process is to be sure that each individual can access financial accounts. In some marriages, one individual plays a bigger role than the other when it comes to banking and investments. Each individual needs to have access to and be aware of bank, investment and financial accounts. They need access to login credentials and account information.

In order to avoid messy situations later on, a divorcing couple would want to update their beneficiaries on their investment accounts as soon as possible. In many marriages, each spouse is the other’s beneficiary, but that often changes after a divorce.

A divorcing couple would also need to split up assets. Taxable accounts that are owned jointly with a spouse may need to be closed, and then separate accounts could be opened in each individual’s name. Each individual should also be aware of fees, financial penalties and tax consequences that they may be subject to if joint accounts are closed and then individual accounts are reopened with the same institution or a different one.

Some couples have found that mediation is necessary when it comes to property division and determining joint liabilities when going through the divorce process. A family law attorney may be able to help a client more fully understand factors that need to be considered along the way. The attorney may be able to provide information about legal separation, child custody, alimony modification and other divorce issues.