From
Your Perspective:
Financial self-defense for women
Separation & divorce
Separation or divorce can be traumatic under any circumstances, but especially if you haven’t developed your own financial expertise. The unfortunate reality is that a divorced woman usually ends up losing out economically, especially if she has been dependent on her husband’s income. Most states require assets be split equitably — not equally — which means the more affluent partner is entitled to a larger share. Future income is not property and is not subject to division, which helps explain the disparity between men’s and women’s financial situations following a divorce: If women earn less, they’re likely to have less in the long run.
One thing you’re sure to need if you find yourself facing separation or divorce is professional advice. Many of the decisions you make at the time of divorce, concerning alimony, child support, or other financial settlements, cannot be changed even if you realize later that you’ve made the wrong decision, or haven’t protected your rights adequately. Legal and financial help can be precious, especially when you’re dividing property. You might be surprised how easy it can be to overlook critical details.
Whether you initiate the decision to end your marriage or have it imposed on you, there are some things experts suggest you consider in order to sidestep potential financial problems:
1. Make sure you know what assets you and your husband have and where they are held. That way you’ll have a more accurate idea of what to ask for in a divorce settlement.
2. Establish your own checking, savings, and credit accounts as soon as divorce seems inevitable. In fact, it’s probably smart to always have at least one credit card in your own name, even if your marriage is stable.
3. If you’re able to work things out amicably, consider an escrow account or joint account requiring both signatures to pay family expenses in the time between separation and divorce.
4. Make a new will and designate a new beneficiary for insurance policies, pension and retirement plans, and any other assets that are passed directly to a beneficiary.
5. Cancel joint lines of credit and freeze joint brokerage accounts. You can call first and then send a follow-up letter. If you ask that a notation be made on the account’s computer file, you may be able to prevent unauthorized trades.
6. Ask your lawyer about changing your ownership status regarding real estate property, from joint tenants to tenants in common, so you can designate your heirs if you die before the divorce is final.
