Divorce often has a lot of financial implications

On Behalf of | May 24, 2019 | Firm News |

Like many people in Kentucky who divorce, you may have expected that you would encounter challenges during your transition from living in a single-family household to adapting to a new lifestyle under separate roofs. From working out custody issues to deciding what to do with your house, the negotiation process is a critical factor toward achieving a fair and agreeable settlement.

Even if you and your spouse are on amicable terms, it’s a good idea to carefully consider your current financial situation and also what you might expect regarding finances down the line. The more you prepare ahead of time for your post-divorce financial future, the easier your transition might be. Any number of legal issues can arise regarding finances, as well, which is why it pays to know where to seek support if you don’t feel equipped to handle a particular problem on your own.

Make sure you establish financial independence

When it comes time for property division proceedings, remember that Kentucky is an equitable property state. This means the judge overseeing your case will decide how to split your marital assets. It also means that the split may not necessarily be 50/50. It is wise to open a separately owned bank account as soon as possible. It’s also never a good idea to co-mingle money from a separate account into an account you jointly own.

Date of separation

While it might seem a lot easier to stay living in the same house right up until your date of finalization, it may be best to establish an official date of separation instead. Any money you earn after legally separating would not count as marital property.

Check your joint bank accounts regularly

If you still share a bank account with your spouse, keep a close eye on things. If money disappears from the account without you knowing he or she was making a withdrawal, it could have serious financial implications because you might have a hidden asset problem on your hands. Many Kentucky spouses avoid this by limiting access to joint accounts.

Spend money to save money

On one hand, you might think it’s better to represent yourself in court in order to save money from hiring an experienced family law attorney. On the other hand, however, it can prove to one’s advantage to obtain experienced guidance and support, because this means you have someone who is well-versed in property division laws and all financial aspects of divorce advocating on your behalf to protect your best interests.