Attorney
Divorce changes everything about your financial life. The income you relied on, the accounts you shared, the credit you built together, all of it gets divided and reorganized. Without careful planning, you could emerge from divorce in a significantly weakened financial position. The good news is that taking proactive steps now can protect your stability and set you up for a fresh start. A Pensacola family law attorney at Staples Law Group can guide you through the financial aspects of divorce while protecting your interests.
Gather Financial Documents Early
Before divorce proceedings begin, compile copies of all financial records. This includes bank statements, investment account statements, retirement account balances, tax returns from the past three to five years, mortgage documents, vehicle titles, credit card statements, and loan documents.
If your spouse controls the household finances, you may have limited access to these records once divorce is filed. Gathering documents early ensures you have the information needed to identify assets, debts, and income sources that affect property division and support calculations.
Understand Your Current Financial Picture
Many people going through divorce do not fully understand their household finances. Create a detailed inventory of all assets and debts, including those in your spouse’s name alone. List monthly expenses to understand what you truly need to maintain your standard of living.
Identify which assets are marital property subject to division and which may be separate property you brought into the marriage or received as gifts or inheritance. Florida is an equitable distribution state, meaning marital assets are divided fairly though not necessarily equally.
Open Individual Bank Accounts
If you do not already have bank accounts in your name alone, open them now. You need somewhere to deposit income and pay expenses that is not jointly controlled. This is especially important if your spouse is financially controlling or if you anticipate conflict over access to funds.
Be cautious about withdrawing large sums from joint accounts without discussing it with your attorney. Courts view dissipation of marital assets negatively. However, you can typically withdraw a reasonable portion to cover living expenses and establish financial independence.
Protect Your Credit
Joint credit accounts remain your responsibility regardless of what divorce agreements say about who pays. If your spouse fails to pay a joint credit card or loan, creditors can pursue you for the balance. Your credit score suffers from missed payments on joint accounts.
Review your credit report to identify all joint accounts. Consider closing joint credit cards or removing yourself as an authorized user. Establish credit in your own name if you do not already have individual accounts. Your credit history affects your ability to rent housing, obtain car loans, and qualify for mortgages after divorce.
Budget for Your New Reality
Two households cost more to maintain than one. The income that supported your family will now be split between separate residences, utilities, and living expenses. Creating a realistic post-divorce budget helps you understand what you can afford and what support you may need.
Factor in expenses you may not currently pay directly, such as health insurance if you are covered through your spouse’s employer. Consider childcare costs, housing expenses, and the cost of maintaining vehicles and property that your spouse currently handles.
Be Strategic About Marital Home Decisions
The marital home often represents the largest asset and the most emotional attachment. However, keeping the house is not always financially wise. Consider whether you can afford the mortgage, taxes, insurance, and maintenance on a single income.
If you do keep the home, ensure your spouse is removed from the mortgage through refinancing. Being awarded the house in divorce does not remove your spouse’s name from the loan. If you default, the lender can pursue both parties regardless of what the divorce decree says.
Work With Professionals Who Protect Your Interests
Divorce involves complex financial decisions with long-term consequences. Your attorney can help you understand your rights to property division, alimony, and child support. A financial advisor or accountant can help you understand tax implications and plan for your financial future.
At Staples Law Group, our family law attorneys help clients throughout Pensacola and Northwest Florida navigate divorce with their financial security intact. Contact our office today to discuss your situation.