A contested divorce can be both emotionally draining and financially perilous. Here are three tips to protect yourself financially when you decide to end your marriage:

Tip No. 1 – Check Your Credit Frequently

Do not let years of hard work building your credit score go down the drain by neglecting your credit report. A contentious divorce often distracts you from the day-to-day necessities of life such as keeping track of monthly bills. If you or your soon-to-be-ex-spouse forgets to pay a credit card bill, your mortgage, or a car payment, the ramifications on your credit score can be quite serious. You need to separate your credit and loan accounts quickly. Be sure to order reports from the three major credit companies including Equifax, TransUnion, and Experian. You should also consider signing up for a credit monitoring service that will alert you to any significant changes to your credit score.

Tip No. 2 – Separate your bank accounts

If you have a joint checking account or savings account with your spouse, take immediate action to divest yourself from the account and protect your funds. Do not worry about seeming “spiteful” or “hurtful” towards your spouse. You do not want to run the risk of your spouse cleaning out the account leaving you with nothing, or very little until the divorce is finalized. You should withdraw half of any money from your joint accounts and place it in your own checking account. If your spouse questions the decision, just tell them that you are being financially responsible and protecting yourself until the divorce is complete.

Tip No. 3 – You May Have to Pay Additional Taxes

Once the divorce is finalized, your tax status changes to “single.” The federal tax code has wholly different tax brackets for single taxpayers compared to married taxpayers. You may also have new income and deductions to incorporate into your returns, including alimony. You may want to hire a tax professional to help you get organized financially and your taxes in order.

Contact an Experienced Tempe Divorce Lawyer Today

Separating money is never a fun event, but it is absolutely necessary. You will be embarking on a new adventure once the divorce is finalized, so you need to protect yourself financially. The Law Office of Ronald L. Kossack can help. We can answer tough questions you have regarding your finances and the best way to move forward. Contact us online or call 480-345-2652.