How do I protect my finances during a divorce?

Protecting your finances during divorce generally begins well before any papers are filed. Financial experts and family law attorneys commonly recommend several key steps.

First, document everything. Make copies of all financial records including bank statements, investment accounts, retirement plans, tax returns, property deeds, and credit card statements. In many cases, once a divorce is filed, certain financial records may become harder to access.

Second, understand your complete financial picture. This includes both assets and debts. Many people are surprised to learn about debts or accounts they did not know about. Running a credit report can reveal accounts and liabilities tied to your name.

Third, open individual accounts if you do not already have them. Having a personal bank account and credit card in your name helps establish financial independence. However, in most jurisdictions, you should generally avoid making large transfers or unusual financial moves once divorce proceedings have begun, as this could be viewed unfavorably by the court.

Fourth, be cautious about joint accounts. In many states, either spouse can withdraw funds from joint accounts, but doing so during a divorce can have consequences. Some jurisdictions issue automatic temporary restraining orders upon filing that restrict certain financial actions.

Finally, consider your long-term financial needs, including housing, health insurance, retirement, and ongoing expenses.

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