Tag Archive money

No one would argue that divorce is difficult for everyone involved. It’s a very emotional time, there is an inordinate amount of stress, and that’s true even if the end of the relationship is reasonably amicable. However, marriages usually do not end on a friendly note. And even if things begin well, the situation often turns into War of the Roses when arrangements need to be made regarding alimony, assets, child support and custody, and visitation arrangements.


It must be remembered that a divorce isn’t just the end of a marriage. It’s also the end of a financial relationship. And opinions will most likely differ as to how everything should be sorted out. Therefore, it is wise to take steps to protect yourself financially during a divorce. What can you do to safeguard your financial assets?


Get your records in order

Gather and organize all of your financial records; having records for the previous five years is considered the standard. You should have tax records, payroll and income documentation, bank statements, and paperwork related to property, vehicles, and investments. Be sure to make copies of everything and keep them in a location other than your house, such as a safe deposit box or the home of a friend.


Get your own accounts

As soon as it seems that divorce is unavoidable, open your own bank accounts and get your own credit cards. Open the accounts at a bank other than the one(s) you and your spouse used. This will keep your financial activity separate and confidential. A credit card in your name will allow you to start building your own credit record.


Keep a close eye on your credit

In a less-than-amicable divorce, it’s not unheard of that one spouse tries to damage the other’s credit. So it’s important to periodically check your credit report during the proceedings. Make sure no credit cards have been taken out in your name, and watch for questionable activity. Joint credit cards should be cancelled. Monitor outstanding debts. If anything looks suspicious, tell your attorney immediately.


Take an inventory

It is essential to take an inventory of all of your assets. And remember, things acquired during the marriage are considered joint property. Take digital, time-stamped photos of valuable assets; you’ll have proof if something goes missing. In fact, some even make a video recording of items in the home.


Reduce expenses

There is no question that divorce is expensive. A budget is necessary so you’ll know how much you need, not just for costs associated with the divorce, but for normal living expenses once you’re on your own. Be reasonable. Since you’ll be living on one income, you’ll most likely have to find ways to cut expenses.


Divorce is a painful, unpleasant, emotional experience. But keeping a level head is important. If it’s apparent that divorce is inevitable, you need to protect your financial assets.

Where is the money going? This is a question that many Pennsylvania residents ask. In many cases, it is simply being spent on legitimate household expenses. However, in other cases, a spouse may be attempting to stash money in a secret account or hiding a debt that he/she does not want the other spouse to be aware of. Often, this is a prelude to an impending divorce decision.


In many cases, there are subtle signs that one needs to pay attention to. When money that is usually available is no longer there, it may be time to do a little research. Where is this money going? Perhaps one’s spouse is attempting a surprise. But, is such a surprise going to be a pleasant one?


Prior to asking for a divorce, many individuals seek to protect themselves financially by stashing funds in a separate bank account or paying off debt. The premise behind such action is often to have money available to pay expenses associated with a divorce and to be able to establish a separate household. Depending upon the family dynamics and financial situation, this may place an additional burden upon an already unstable family situation.


It may not always be possible to discover financial secrets prior to divorce proceedings. Fortunately, each Pennsylvania resident involved in a divorce will be required to disclose all financial accounts during the process. With this information in hand, the individual, along with legal counsel, will be able to decide the best course of action to protect oneself financially throughout the process and in the future.

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The family home often becomes a focus when a couple decides that it is time to end the marriage. Should one of the individuals keep the home, or should they sell it? Will the children be better off if they are able to remain in the home, or would a change of scenery be better? While these may appear to be the pertinent questions in the divorce negotiation process in Pennsylvania, there are other, perhaps more important, questions that need to be addressed.


Prior to digging in the heels and insisting on keeping the home, the individual will want to take a careful look at his or her financial picture post divorce. What will the individual’s budget look like? Will there be enough income to cover the expense of keeping the home along with all the other expenses that will need to be paid? In some instances, the simple reality is that it may be a financial struggle for the individual to keep the home. If this is the case, it may be better in the long run to go ahead and sell it.


Another financial concern that will need to be addressed is the tax implications related to the sale of the home or the transfer of financial assets. Depending on the sale price of the home and the structure of the divorce agreement, the individual may be liable for capital gains taxes. Additionally, depending on the way some financial assets are transferred, taxes and penalty fees may be levied.


While, on the surface, it may appear that keeping the family home is a good idea for the Pennsylvania resident, this may not be a prudent financial decision. This, along with a number of other items, is just one of the many financial concerns that the individual will want to review prior to finalizing the divorce agreement. Experienced guidance can help the individual in determining the best way to proceed.

Lawyer, attorney, law, divorce, bankruptcy, real estate, alimony, debt, debtor, creditor, child support, adoption, estate, probate, wills, estate planning, central Pennsylvania, PA, Harrisburg, Hershey, Lebanon, York, Carlisle, Cumberland, Dauphin, Perry, Republican, democrat,