Divorce Preplanning Strategies

Nobody marries expecting to get divorced. Unfortunately, approximately 5 out of 10 marriages today end in divorce. That percentage seems to grow each year. In many divorce proceedings, a party suffers a great loss financially. Others typically tend to lose precious time with their children.

There are several simple and logical ways to protect yourself financially if you believe your marriage is in jeopardy:

Establish Your Own Credit

Make sure your name is listed on all household accounts. Establish at least one credit card in your own name. This will help to create an individual credit history. When you are on your own, you will have a better chance qualifying for loans, mortgages and credit cards. These are all important considerations after a divorce.

Know Your Financial Situation

Maintain complete and separate records of your financial holdings such as bank accounts, IRA's, 401K, land purchases, and stocks. This includes assets in your spouse's name as well.

Close Joint Accounts

If a divorce is imminent, you might choose to contact joint credit-card companies in writing to freeze or cancel your joint accounts. You may not want to be responsible for your spouse's new credit card charges. You may also wish to close your joint bank accounts. If any proceeds are removed, keep an accounting of where the money is placed or how the proceeds are spent.