A marital breakup is an experience many Virginia residents would describe as emotionally challenging. Unfortunately, divorce is notorious for being a significant financial challenge as well. Here are some key financial strategies that could help to reduce the cost of divorce.
One of the most important things to do for those facing divorce is to separate finances and accounts from the soon-to-be former spouse as soon as a split becomes inevitable. Unfortunately, identity theft has become common during divorces. Also, credit scores could be damaged amid the conflict and confusion over who is responsible for certain accounts. Separating financial accounts is the best protection.
Now is the time to get a clear picture of financial health. Request and compile records and statements from banks, investments and retirement accounts. Also, do not forget to examine assets like stocks, benefits from employers, tax refunds and even credit card reward points.
Monitor credit reports
Credit reports will let a person know what credit accounts are open in his or her name and whether the accounts are joint or separate. Credit reports can also help guide couples through discussions about how any existing balances will be handled and whether to close the accounts or keep them open. Be sure to monitor credit activity.
In some high-asset divorces, spouses who are willing to work together can reach an agreement on how to settle without further court intrusion. Any person in Virginia who has questions about any aspect of divorce could get help by speaking with an experienced lawyer. A knowledgeable family law attorney can examine the situation and help clients obtain the most financially favorable outcome.