Most married couples have intertwined their finances through joint bank accounts, joint debts, and joint titles to property. Sometimes, the idea of separating these finances after a divorce can seem like a daunting task, especially in the case of a long-term marriage where the parties have acquired significant assets and liabilities. This blog post includes some tips on smoothly transitioning your finances after a divorce.
Once your divorce is finalized, you and your spouse will need to close any joint bank accounts. How the funds located in those accounts will be divided should be addressed in your Divorce Decree in order to avoid potential conflict.
Additionally, if you have not already done so, you will need to open individual bank accounts. If you are enrolled in direct deposit through your employer you should notify your employer of your new bank account to ensure that your paycheck is deposited accordingly.
Credit Card Accounts
Any joint credit cards should be closed and you should take steps to ensure that your former spouse is not an authorized user on any of your individual credit cards. Your Divorce Decree should identify who is responsible for any joint credit card debt and you should be sure to transfer any balances you are responsible for onto an individual credit card.
If you and your spouse own a home jointly and one party is awarded the home in the Divorce, steps will need to be taken, such as a Summary Real Estate Disposition Judgment, to transfer all right and title in the property to the awarded spouse. Be sure to check your Divorce Decree for any specific language regarding how the interest in the home will be allocated post-divorce.