The property division legalities set out in Part I of this blog post are only what the courts will impose. You own personal division of property and assets will also be very important. There is much to be gained by discussing, planning, and executing the division of marital property with your spouse before getting to the courtroom. Even when the petition to divorce has been filed, if both parties agree to the division of property, you can save yourself a lot of stress and money. Let's look at a few items you may want to discuss before you sit down with your lawyer:
Close and Divide Joint Bank Accounts
Make the decision with your spouse to divide these accounts. Open an account in each of your names and separate the cash. Do not try to be sneaky about your joint bank accounts. No, you don't want to clean them out, leaving your spouse unaware. This is a nasty game that will only make things tough later on. Hiding assets is illegal and will only hurt in the end.
Open a Separate Credit Account
If you have always used your spouse's credit, now is the time to open your own. One credit card can help you establish yourself for the future. Start right at the bank where you now have your individual checking and savings account.
Be sure Both Names are on Joint Properties
This includes the house, cars, and other valuable properties. With both names on the title or deed, you have a legal claim to it. Many couples don't think about this and when it comes time to divorce, they may have difficulty proving their ownership.
Other Pre-Marriage Assets
If you inherited money, property, or won a settlement before you were married, be sure to discuss this with your spouse. Some states may consider these assets jointly owned, while other states do not. However, making an agreement about these assets before you get into the courtroom will save you time and money. Be sure to have any paperwork proving ownership ready, as well as signed agreements and clear paper-trails for the money involved.
Get All Financial Documentation Together
Some funds require legal distribution. This may include a 401(k), retirement fund, mutual funds, and other investments. Be sure to talk to your employer or agent about changes to be made to insurance policies, coverage, and beneficiaries. Have all the paperwork ready when the time comes to present it to your attorney. Again, if you try to hide assets that you are legally bound to divide with your spouse, you will only suffer later. Keep the handling of these assets and insurances on the up-and-up to avoid trouble.
Divorce makes people do crazy things where money is concerned. The division of money and assets can go horribly wrong very quickly if you're not prepared. If you have not made an amicable division of property, something as simple as a $100 rug can end up costing you $1,000 when your lawyer decides who gets it. That's reason enough to play fair and reach decisions together. The more you understand about the legalities, and the more you handle yourselves, the better off you will be before, during, and after the divorce.
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