Divorce triggers a number of concerns. One of these is your finances. What will you walk out of the marriage with? How will you live off one salary? How about child and spousal support?
While you can wake up one morning and file for divorce, it is in your best interest that you take steps to prepare finances for this undertaking. But why is this important?
Understanding Connecticut property division laws
When you resolve to end your marriage through divorce, all the assets and debts (collectively known as marital property) that you have procured during the marriage will be subject to division per Connecticut’s equitable distribution laws. This doesn’t necessarily mean that you will walk away with 50 percent of the marital property. Rather, it means that the court will take into account factors like the duration of the marriage and each party’s contribution to split the marital property in a manner that it deems fair to both spouses. And this explains the importance of prepping your finances for the divorce. So how do you do this?
Here are two steps that can help you row your ducks (financially speaking) for the divorce.
1. Gather your financial paperwork – during divorce, both parties are required to disclose what they own and/or owe. Withholding some assets can land you in trouble with the law. Thus, the first, and most important, step you need to take to prepare your finances for the divorce is to create an inventory of your assets and liabilities.
2. Freeze joint accounts for debits – it’s not uncommon to operate a joint bank account with your spouse. If you have decided to divorce, however, it is important that you jointly freeze these accounts for debits until the property division exercise is concluded. Likewise, if you have joint credit cards, be sure to close them.
Finance can be a contentious issue during the divorce. Understanding how Connecticut divorce laws work can help you better prepare your financial interests for the divorce.