If your marriage is on a one-way street to divorce court, you have to take precautions immediately to protect both your achievements and your future.
This is especially true if you have joint accounts with your spouse.
Any earnings your spouse brings home go out the door when he or she does.
On top of that, once you split up, you may not qualify for loans that you could qualify for when you were together.
And that’s the good news. It gets worse.
Your other half can wreck your credit while you are still together if he or she is a bad egg. It may take years to undo the mess that they create. You don’t want to be in either scenario.
The good news is that there are five ways to protect yourself from your spouse’s financial ineptitude or malice (or both). And here’s a bonus: If you take the following precautions, it can make it much easier to protect your assets during the divorce
On top of that, it sends a strong message that just might wake your partner up… And maybe even save your relationship.
Either way, here are five steps you should take once your relationship looks like it’s “going Gettysburg.”
Image Credit: DepositPhotos.com.
1. Close joint credit cards
If you share a joint card with your spouse and don’t want to be responsible for their continued spending, contact the credit card company now. Tell them to close the account to future purchases.
After the call, follow up with a certified letter.
The company won’t be able to close the account completely until the balance is paid in full. That means that you are responsible for the charges and balance (including interest) up until the time you contact it.
However, this is still an important step because it limits the damage. Once you put a lid on any potential credit card problems, apply for a card in your own name and use it exclusively.
Image Credit: DepositPhotos.com.
2. Consider investment & bank accounts
Most joint accounts are set up to allow either party to withdraw money. Under normal conditions, that is fine.
However, if you are afraid of being cleaned out by the ex, you have to take action before the horses get out of the barn.
Just remember that you have to proceed cautiously. If you empty the accounts as a precautionary measure, you might set yourself up for legal problems down the line.
My suggestion is to contact an attorney and ask them what to do. You may be directed to call your bank and/or brokerage firm to put a freeze on the account(s).
Alternatively, you might be able to change the accounts to require both signatures rather than just one for withdrawals.
Either way, get expert advice and take action before things go nuclear.
Image Credit: DepositPhotos.com.
3. Protect your data
Make sure you have copies of all your financial data, including tax returns. Then, change all of your passwords. Enough said.
Image Credit: DepositPhotos.com.
4. Protect your mail
You will build a financial life separate from your partner’s.
This means that you’ll need to get your own mail and maintain your privacy. The best way to do that is to set up a P.O. box and have your mail delivered there instead of your residence.
Image Credit: DepositPhotos.com.
5. Get a credit report
I am truly sorry to tell you this, but no matter how benevolent or benign you think your spouse is, you have no idea what they’ve done to their own credit. If they’ve messed it up, they’ve hurt yours as well.
People can always surprise you, and it’s not always with cake and candles. You need to get your credit report so that you can fix any problems and/or mistakes before they impact your financial life.
Unfortunately, I have more unnerving news for you: Your spouse could be living a double life.
If that’s the case, your credit report might be the best way to uncover financial secrets that your partner has been keeping. Get the report and keep a close watch on your credit history.
Breaking up is hard. The emotional drain is devastating. The last thing you need is for financial and credit problems to pile on top of that. These five steps can help you take care of yourself.
What other tips do you have for people who are splitting up? Have you ever gone through this process? Looking back, what would you have done differently?
This article originally appeared on WealthPilgrim.com and was syndicated by MediaFeed.org.
Image Credit: DepositPhotos.com.
