For some California couples, marital bliss is not their reality. In fact, one of the happiest days of their lives may just be the day that they sign divorce papers. Throughout this process, though, there are a number of financial concerns that will need to be addressed.
Most married couples commingle at least some of their funds. They often have a joint account that is used to pay bills and perhaps other expenses. When divorce is in the foreseeable future, the individual will want to go ahead and open up an individual checking account. It may appear that an amicable divorce is in the making; however, things can change and it is advantageous to go ahead and separate funds.
Many couples also maintain joint credit accounts. Whenever possible, each individual will want to establish credit in his or her own name and open separate credit accounts. To the extent possible, joint credit accounts should be closed and possibly refinanced in the responsible individual’s name; this may not be possible with a mortgage or other such account.
Another financial aspect that the individual will want to review is the beneficiary designations on investment accounts, retirement accounts, insurance policies and other such accounts. Typically, the spouse is the one listed as the beneficiary. However, given the changing relationship, this may need to change.
Divorce is a fact of life for some California couples. By being proactive and addressing financial concerns upfront, the individual will be prepared and ready to move on with life. Experienced legal counsel can assist the individual in making sure that all necessary financial aspects are addressed.