Steps to Protect Your Money in Divorce

Most spouses entering into a divorce process already have difficult matters to address, but financial issues can make the situation even more contentious and challenging. When one party chooses to conceal assets during the divorce proceedings, the implications for both parties can be far-reaching. 

Michigan divorce laws impose serious penalties on any spouse found guilty of intentionally hiding property and other assets in violation of their obligations as a divorcing spouse, and there are legal ways to protect your finances during divorce. Amid divorce and concern about how a spouse may handle the division of assets and finances, here are some tips on protecting your money.  

Five ways to protect your money

1. Know your state’s regulations

Knowing your state’s laws is essential for anyone contemplating a divorce, regardless of the state where it will take place. Divorce laws vary from state to state, so if you are living in or filing in one particular form, research the rules and understand how they will impact your financial decisions. In Michigan, all spouses must honestly disclose all assets before divorcing.

2. Do not hide your assets or open offshore accounts

Concealing assets during a divorce can be alluring, especially when trying to protect or preserve funds. However, this strategy needs to be revised as it can leave you with steep consequences if caught. Facing monetary fines, possible criminal charges, and a decline of credibility with the court can leave your finances in severe disarray. Being honest about your assets from the beginning often helps entrepreneurs protect their funds. 

3. Close joint accounts to protect your credit 

After working through the process of separating from an ex-spouse, it is essential to take the necessary steps to protect your credit. An excellent place to start is by closing joint accounts, paying off any remaining balances, and talking to your credit card companies about freezing the accounts. Doing so will help shield you from any liabilities caused by your ex-spouse’s spending in the future. Additionally, opening up a credit card under your name will get you on the road to building a good credit profile for yourself in the future.

4. Hire a qualified divorce attorney 

Accessing relevant and state information during a divorce can help navigate the process. Emotions may run high, and it is not uncommon for people to make decisions or carry out actions that could have long-lasting financial implications. With this in mind, seeking reliable advice and exploring your options beforehand is critical to keeping yourself and your financial assets protected throughout the divorce. 

5. Appoint a new beneficiary and power of attorney

Protecting yourself financially should take priority. Naming your spouse as the beneficiary on insurance policies, trusts, and wills is commonplace; however, circumstances can change with divorce. If the unthinkable were to happen, you must take the necessary steps to secure finances and ensure your medical wishes are taken care of by a trusted family member. 

Contact our attorneys today to protect your finances.

A divorce can be a challenging and emotional experience not only due to the heartbreak of ending a marriage but also because there are complex legal implications. Protecting your hard-earned money during the divorce process is critical, and that’s why you should contact the lawyers at Robbins & Licavoli PLLC for assistance. 

Our mission is to provide our clients with compassionate and honest advice as they move forward. Our experienced attorneys understand these complicated financial matters and are well-equipped to guide individuals through the entire process, focusing on achieving an equitable outcome for all parties involved. Contact us today to schedule a consultation.