25+ Years of trusted representation & superior results for clients. Nobody will fight harder than us.

How to separate finances in a divorce

On Behalf of | Dec 4, 2017 | High Asset Divorce |

One step many people in Pennsylvania may need to take when they are getting a divorce is to separate their accounts. This includes closing shared accounts that are in both people’s names. Doing so can protect someone from a spouse that might clean out an account or run up debt without having to pay. It also offers both people the opportunity to establish separate accounts and individual credit.

In a divorce, shared debts are usually divided. Unfortunately, sometimes a debt may be shared, and the other person is unwilling to make the payments. Missed payments could have an effect on the other spouse’s credit, so in this case, it might be best to go ahead and pay the bill. However, in other circumstances, a person should avoid paying too much of the debt before the divorce.

As a person begins to build an individual credit history, it is important that he or she uses credit responsibly. He or she should pay off any new accounts regularly. Monitoring the credit report also is important to ensure that it is correct and that a former spouse’s information does not appear on there erroneously. People also may need to carefully track their spending to ensure that they remain within their budget after the divorce.

The division of property might be particularly complex in a high-asset divorce. There could be businesses, investment, real estate and more to divide. If one person largely handled the finances, he or she might attempt to hide assets. Dividing a business can be particularly complex because even if one spouse was not involved in running it, that person might still have a claim on it. A couple may be able to negotiate a solution for property division even if the divorce is contentious. Their attorneys may assist in these negotiations. If talks break down, a judge will make a decision regarding property division.