When a marriage comes to an end, the result can cause partners to experience financial challenges. Married couples typically share many things from bank accounts to property. When a marriage dissolves, it is in the best interest of the involved parties to protect themselves against any negative repercussions. In California, there are cautionary tactics individuals can employ to guard themselves from monetary problems during and after a divorce.
A suggested approach is for newly divorced spouses to contact their personal insurance brokers to ensure they are only paying for insurance on the items or property they actually own. Often, this is overlooked, and one partner is paying insurance on property that the other party gained through the divorce. Another idea is to apply for a new credit card before the divorce is complete. Through this, the divorcee has a short-term resolution to financial hardship, especially if essential bills must be paid immediately after divorce.
Further, re-titling assets and familiarizing oneself with investments enables the party to determine what is financially beneficial or financially a burden. If burdens are found, it may prove imperative to sell whatever investments will not be rewarding in the future. Additionally, selling valuables that are no longer sentimental could increase liquid funds as well as possibly assist the party in moving on emotionally.
While divorce can be challenging both emotionally and financially to many California couples, with proper preparation, it can also be a step toward a brighter future. Whether one is considering ending his or her marriage, or if a spouse is already facing a divorce, properly protecting oneself from potential financial pitfalls could prove invaluable toward achieving a positive outcome. It could prove advantageous for anyone in these situations to seek legal counsel in an effort to prepare for all of the financial intricacies involved in the divorce process and its aftermath.
Source: huffingtonpost.com, “7 Financial Management Tips For Anyone Who Just Went Through A Divorce“, Toby Nwazor, Accessed on April 22, 2018
