Immediately following the decision to divorce, Arizona divorcees may be forced to deal with the emotional weight that often comes with such a decision. However, it can become quickly apparent that there is much on the financial side that needs to be taken care of as well. Rather than being a burden, taking care of some of these financial matters can help Arizona divorcees achieve a peace of mind, knowing that their finances are secure and that they are bettering their chances at a favorable divorce settlement.
The first matter of business following the decision to divorce is to close any joint accounts. This includes joint bank accounts, shared credit cards or any other lines of credit. This should be done as soon as possible so as to avoid being stuck with newly accrued debts. Seeing as married couples share personal information, it is possible to monitor credit activity to make sure no fishy activity is occurring as well.
While monitoring credit activity, it is also a good time to begin piecing together the financial picture. Coming to a clear understanding of a financial situation -- that is, valuing assets, being aware of any debts and knowing what one may be entitled to -- can be immensely helpful to any divorcee, especially when it comes time for property division. There will be important decisions to make regarding who will keep the house, as well as how to divide less obvious assets such as retirement accounts and stock options.
Being fully informed and making decisions guided by expertise can play a big part in paving the way for a successful divorce. With all financial matters protected prior to the divorce proceedings, it may then be possible to begin post-divorce life in a financially -- and oftentimes emotionally -- strong place.
Source: ABC News, "How to Protect Your Finances in a Divorce," AJ Smith, March 31, 2014