How to Protect Your Savings During Divorce

Are you about to go through a divorce and are worried you’re going to lose your life savings?

It’s a common fear. Who hasn’t heard stories about how their friend lost everything to his ex-wife during their divorce? No one wants to go through that. But, who wants to be stuck in a loveless marriage? You can go through a divorce without losing your life savings – read on to learn more.

 Keep Your Credit Rating Intact

Before you get divorced, separate your finances from those of your spouse. It sounds like a lot of work, but it’s worth it.

Let’s say your soon-to-be ex-spouse is the vindictive sort. He or she could run up high charges on your joint credit card and leave you on the hook to pay for them. If the accounts are separated, your ex can’t do any damage.

Be sure to pay off all outstanding balances on any joint accounts. Late or stopped payments will damage both of your credit ratings.

Consider an Uncontested Divorce

An “uncontested divorce” means that both parties agree on all issues at stake in the divorce. Conversely, a contested divorce refers to a situation in which neither of the parties agree on the issues (such as custody arrangements or child support).

What else differentiates a contested divorce from an uncontested divorce? A contested divorce costs significantly more because the two parties go to court. Going to court means paying for lawyers, which gets expensive.

What Happens to Investments?

If you’ve got registered investments (such as RRSPs and RRIFs), they will be divided equally upon divorce. Assets are also divided upon divorce.

What does the division of assets look like? Let’s say that Mike and Mary are getting divorced. They have a house worth $300,000 and registered investments worth $400,000. If Mary wants to keep the house, she’ll have to give up part of her share of the investments.

 

Hire the Right Divorce Lawyer

One of the best ways to secure your savings is to make sure you get the best possible settlement in the divorce. Fine and Associates has helped countless individuals with their child support and spousal support needs, with expertise and compassion.

Fill out the form at the right to request a free, private consultation, and let us help you move on to your next chapter without financial uncertainty.