Divorce is a tough time for everyone involved. There are so many issues to resolve and concerns about the future.
Handled casually, divorce can impact your finances for years to come. In fact, it is not uncommon for divorce to lead to personal bankruptcy. So how can you get your finances ready for a divorce?
Here are three crucial steps that can help you prepare your finances for divorce:
1. Close any joint credit cards
While you were together, chances are you had joint bank accounts as well as credit and debit cards. Once it is clear that you are headed separate ways, however, you need to freeze these accounts. The last thing you want is your spouse racking up credit card debt in your name. Remember, any property acquired (including debts accrued) during the marriage shall be subject to division per Iowa marital property laws.
2. Begin gathering marital property
By law, each party is required to declare what they own (and owe) for purposes of equitable distribution. Failure to make full disclosure of what you own, either by choice or mistake, can lead to problems with the court. As such, it is important that you are as thorough and forthright as possible.
Besides the legal requirement, documenting marital assets can also help you spot if your spouse is attempting to hide marital assets.
3. Start tracking your income and expenses
If you shared household bills, divorce means that you will be on your own going forward. Thus, it is in your best interests that you begin tracking your income and expenses so you can ensure that you are living within your means.
Safeguarding your interests
The importance of preparing your finances for divorce cannot be overstated. Learning more about Iowa divorce laws can help you safeguard your financial interests before, during and after the divorce.