Knowing that your finances will change because of your divorce may tempt you to conceal assets. However, this decision could tarnish your image, drag out divorce proceedings and jeopardize your settlement.
Despite the uncertainty of your split, there are better, more ethical ways of protecting and rebuilding your finances. When you understand the consequences of hiding assets, you might have the incentive to avoid this type of behavior.
Protecting your money
One of the challenges of splitting from your spouse could be the adjustment to a single income. While your financial responsibilities might grow, you may lose the momentum you had when you shared the money with your ex. However, hiding money in an effort to keep from losing too much could have serious repercussions. The discovery process in a divorce case can be complicated and maintaining transparency usually is the best bet.
Some things you might consider doing to protect your finances include the following:
- Know what money you have
- Gain access to all financial accounts
- Document movement of assets
- Refrain from frivolous spending
Regaining your footings
Rebuilding your financial reserve will take time and patience. As soon as you anticipate divorce, refigure your budget. Think carefully about your expenses and what you really need. Adopt a conservative lifestyle, particularly while you navigate divorce proceedings. Make a goal to save your money, even if only a small amount at a time. Consistent contributions could help you gain momentum and eventually, you will see improvements. Our office often works with financial advisors or certified divorce financial advisors to assist our clients in moving forward.
In the months or years following your split, you may eventually reach a point where you feel stable again. This is a great time to consider diversifying your savings and exploring options that yield compound interest. A divorce is never a pleasant situation, but you can prevent the long-term financial impact it has on your life if you take control from the start.