Posts Tagged ‘divorce and money’

How Can You Make The Best Financial Decisions During Divorce

Thursday, August 18th, 2016

For most people who are going through a divorce, getting through it as quickly as possible is the main goal. After all, divorces can be very painful and the only way you can start moving on is by getting past all of this.

However, if you don’t give your divorce the proper attention and due diligence, you can really come out on the wrong side at the end of it all, and pass up on a lot of important, and sometimes vital opportunities that arise during the divorce process.  This is especially true in the financial realm of divorce, where emotions can compromise your ability to think clearly, and take the most prudent course of action.

For example, many individuals who have just gotten out of a marriage fail to realize how different their expenses are going to be now that they are no longer living with their spouse. It is extremely important to develop a strict(er) budget, at least until you understand just how much more difficult paying expenses on your own will become. This is certainly true if you were in a marriage where expenses were split up, such as you covering the utility bill while your spouse covered groceries.

You have to learn how to manage these expenses all over again, and to disregard the importance of budgeting can lead to serious financial problems in the near future.

A good idea is to create a list of your new financial responsibilities and smartly estimate how much more you are going to have to pay. If there are kids involved, alimony and child support are key in keeping up your finances while still caring for and providing for your children. Of course, it does depend on the financial situation of both you and your former spouse, but receiving these types of financial support can be the difference between having a sense of normality at home and stressing over every nickel and dime.

You don’t have to take on the world all-alone after divorce, the law was created to help you. Don’t let pride stop you from requesting child support and alimony from your former partner, and understand that you both started a family together, and it is up to both of you to provide for your children.

3 Common Ways Spouses Conceal Wealth From Each Other

Wednesday, November 4th, 2015

People are naturally stingy with money, and when you have someone who is overly protective of their private wealth, you would be surprised at some of the tactics I have seen that some go through in a desperate attempt to keep what is theirs. This is especially true when it comes time for couples to begin the divorce process, which includes the separation and distribution of money and property. I have seen every stunt pulled by wildly greedy spouses, desperate to keep every last dime in their procession, and hidden far and away from the court, their spouse’s attorneys, and sometimes even their own attorney. With that being said, I have narrowed this long list down to the three most common and, to be frank, the most successful tactics used to hide personal assets in anticipation of the divorce proceedings.

One popular move is transfer their assets to a separate account:  Generally speaking, the transfer is from the joint bank accounts, and any brokerage account, where both spouses have been depositing money, and into a solely owned bank account, under only one of the parties’ names, and often these transfers happen very quickly, because if one of the spouses are engaged in this, why wouldn’t the other be? This fraudulent act has had scattered success, especially when that separate account could possibly be an off-shore account.

Another popular method is to create fake expenses, and use them as excuses as to why they “don’t have the funds” to cover legal fees, or pay some type of support. It isn’t terribly hard either, especially if they have accomplices to help sell the story of where there money went, and more importantly, why you can’t have any or see it.

Lastly, and this one is really conniving, is if they take out cash withdrawals from a debit card. At almost any store you shop, after swiping the debit card, and then entering the pin and so forth, you will often be asked if you want cash back. Most of us answer no, because we want that money to stay in the debit account. However, your spouse can just get groceries, but also withdraw amounts up to $80. Overtime, this could build up very quickly, and it would never be noticed because on the billing statement it will just say the store and items purchased, leaving no trace of the cash withdrawal. It is all just shown as part of the groceries. Pretty clever, huh