2 Steps to Ensure Your Finances Are in Order before You Finalize Your Divorce
If you are getting divorced, you need to make sure that you take steps to protect the money that you are going to get after your divorce. Here are two things that you need to do during your divorce to ensure that your financial needs will be taken care of after the divorce is over.
#1 Make Sure Your Support Payments Are Insured
If you were granted either child support payments or spousal support, you need to make sure that your spouse is able to actually make these payments. If your spouse is injured so that they can no longer work or if they pass away at a young age, you are not going to get the child support or spousal support that you need.
You can help ensure you get the support you need by making one of the legal requirements of your divorce that your spouse obtains both a life insurance policy and a disability insurance policy. Should anything happen to your former spouse, their insurance will continue making the child or spousal support payments.
Make sure that the life and disability insurance policies that your spouse obtains are designed so that you are the benefactor. Require that legal notice be filed if any change in benefactor in initiated. Also, make sure the the insurance company knows to contact you if payments stop on either of these policies.
#2 Clearly Define Liability for Debt
If you and your spouse shared credit card debt, the credit card company is going to come after both of you for the debt. They are not going to care that you are divorced. When you go through the process of the divorce, for both of your financial health in the future, you need to decide who is going to pay off each credit card that you have together. You need to make sure that this agreement is in writing and is included in your divorce agreement.
If possible though, try to work with your spouse to pay off all credit card debt before your divorce is finalized. If you have any shared assets that you can pay off to settle this debt before your divorce is finalized, take the step to use that money to get rid of that debt. If one of you fails to pay off any of your credit card debt, it could harm both of your credit scores in the long run.
For more information about keeping your finances in order while getting a divorce, check out http://www.chesapeakevalawyer.com.