Preparing in advance before divorce begins can set people up for the smoothest legal process possible. Gathering financial records and tapping into social support networks can both be important steps for those preparing to file for divorce or anticipating a spouse’s filing.
Establishing a personal checking account and independent revolving lines of credit can also be important for those preparing for divorce. While those accounts are not insulated from the divorce process, they can help people avoid common setbacks that arise in early divorce.
Separate accounts can help to ensure financial continuity
In some divorce scenarios, including high-conflict divorces and cases where spouses allege financial misconduct, the courts may freeze joint accounts in the early stages of a divorce. Spouses may no longer be able to use joint credit cards or trust the state availability of funds deposited into a joint checking account.
Frequently, people spend several days after a divorce filing going to their financial institutions and making arrangements to have separate financial resources. Technically, any credit card balances accumulated and any accounts opened by either spouse require disclosure during the divorce and may influence the overall distribution of property.
Even assets solely in the name of one spouse can be subject to property distribution under Indiana laws. However, those separate accounts give people the financial flexibility they need when establishing their own households and otherwise handling the practical challenges in the earliest stages of divorce.
Reviewing current financial practices and resources with a skilled legal team can make it easier for people to take the steps necessary for a smoother transition when a divorce begins. A lawyer’s guidance can help spouses prepare effectively for divorce or respond quickly in a manner that keeps their life as stable as possible.