Considering one’s finances is an important part of making any decision about the future — including during divorce. Property division is not always as clear cut as it seems, though. The process may feel dominated by tangible assets, such as houses, vehicles and home furnishings. Spending the majority of the property division process focused on these types of physical assets can negatively impact one’s future financial security.
Remember financial accounts
Many married couples in Pennsylvania maintain joint bank accounts. Simply removing one person from a joint account can be challenging though, and in some cases may not even be possible. Instead, divorcing couples should be sure to open their own individual accounts into which they can deposit their money and use after divorce. Other joint accounts that may influence post divorce finances include:
- Savings accounts
- 401(k)s and IRAs
- Credit cards
It is also important to reevaluate insurance needs during and after a divorce. If one spouse decided to keep the family home, he or she may need to secure a new homeowners’ insurance policy if the prior policy was in the ex’s name. The same is true for car insurance policies when keeping a vehicle in a divorce.
While it is true that divorce can have a negative impact on one’s finances, it is possible to limit that impact by being proactive with the property division process . Accumulating as much information as possible about marital finances and jointly owned assets is a good first step. Those who are not sure how to proceed from there may want to consider reaching out to an attorney who is knowledgeable in Pennsylvania family law.