Divorce can come with many issues, including child custody and asset division, but one of the most common issues in divorce is over finances. It’s important for Alabama spouses to be aware of where they stand financially. There are ways that spouses can be financially savvy during divorce.
One step spouses can take is to become knowledgeable about their financial standing of assets and debts. It’s important for spouses to know how many debts are owed and how much in funds they may have. This can help with creating a financial plan and budget as spouses enter in the single life. While reviewing finances, it’s also important for spouses to check on credit scores to see how many accounts are in their names. Since the divorce process entails exchanging financial information, another step spouses can take is to organize their financial records.
Financial records may include joint and separate bank accounts and investment accounts. Lastly, it may be important for each spouse to open their own bank accounts. This can help to avoid separate earnings from being included in community property. This can also help to make the division of property much easier.
As challenging as divorce is, it does not have to always be a contentious courtroom battle. Alabama spouses may stand more to gain by being cooperative with each other when it comes to financial matters. By coming to a settlement that they can both agree on, the divorce process may take less time and become less intense. Gaining an understanding of Alabama’s divorce laws on property division could be a critical step toward a better future for all involved parties.
Source: Huffington Post, “Divorce Confidential: The Importance of Being Financially Savvy During Divorce“, Caroline Choi,