Divorce can render relations hostile between partners, so protecting credit and assets can help people avoid financial consequences. Although divorce is emotionally charged for both partners, couples who have developed a financial plan and have strong knowledge of total family finances will likely be in better positions to negotiate with each about how to separate finances. For couples where one partner has all financial knowledge or where partners have been dishonest with each other (such as the hidden child support payments of Gabe from the couples scenario) can make a difficult situation even worse.
Some financial dos and don’ts when divorcing include the following:
- Do prepare a budget and financial plan to sustain you until the divorce is final.
- Do review monthly bank and financial statements.
- Don't make large purchases or create additional debt that might later cause financial hardship
- Don't transfer or give away assets that are owned jointly.