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Tips for getting finances in order before a divorce

On Behalf of | Apr 17, 2018 | Divorce

People in Kentucky who are thinking about getting a divorce might want to take a look at their marital finances first. One important step may be getting copies of important financial documents such as paperwork for retirement and investment accounts, tax returns and bank statements. These should be placed somewhere safe.

People should also get copies of their credit reports. These can be reviewed, and any errors can be addressed before the divorce is underway. If couples have shared accounts, if possible, people should review these as well to make sure they are not being misused. They may also want to consider setting up a personal bank account and getting a credit card. Changes to the Credit Card Accountability Responsibility and Disclosure Act of 2009 allows spouses who do not earn an income to apply for credit using household income.

Taxes may change as well, and it might not just be a change in filing status or income bracket. The sale or division of some assets could result in a tax liability for the year following the divorce. People may want to speak to a financial planner about taxes and budgeting and work with other professionals as well.

People should keep in mind that they can consult an attorney before they have made a decision about a divorce or even discussed the matter with a spouse. This might help a person get a sense of how the divorce may proceed in terms of property division and child custody. For example, a nonworking spouse might be eligible for alimony while training to enter the workforce. If that spouse is also the custodial parent, the other spouse may be required to make child support payments as well.

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