If you are going through marital problems, it would be a smart approach to plan ahead even though you might not have to face a divorce. Below are few tips that you can keep in mind if you are going through a divorce:
Mortgage - It may be a good idea to sell any extra equity in your home which may help you to start over financially. If the spouse is staying in the home it is better the refinance the home in the name of the spouse only.
If this is not possible, then a Quit Claim Deed will be asked to sign by the spouse who is not staying in the home. This form is to give up the rights to the property to the other person. Thought it should be noted that the debt obligation may not be relieved from the spouse. This can badly affect the credit of the other spouse if the mortgage is not paid on time.
Setting up a budget - This might be one the most important things that you can do to reduce some of the stress from the major change in your life. Based on your individual income, child care, etc project your new income. Make sure you have keep some money aside for your home maintenance and other spending and be realistic about that.
Joint Credit Card Accounts - If both of you have joint debts, then try to split them equally into your accounts and pay it off. Even though the divorce decree may say that only one person has to pay the debt, as pre the credit card company it is still considered as a joint debt until it is cleared. If the responsible person as per the court delays in paying off the debt, it will equally affect the other person also.
In the middle of a divorce it is uncertain what a spouse can do to hurt the other spouse. There are many cases where the mortgage was seriously affected because of non-payment of debts.
Establishment of credit - If you depended on your spouse's credit during your marriage, it is better to apply for your own individual credit card. This will help you build a better credit history instead of relying on someone else.
Savings and Checking Account - Separate you finances by maintaining individual savings and checking account. Any automatic deposits or withdrawals can be moved to the new account. If you were not the one handling the finances, then a good start would be to start balancing a checkbook and check where you are standing financially. You can find out who owes and how much by reviewing a credit report. Saving money for unexpected expenses would be a good move too.
Maintaining a calendar - Organize yourself by maintaining a tab on all your bills and paydays. This will help you know when exactly is your next payment on due . It would be a good idea to pay all your bills on time so that your next due date won't be affected. If you find it difficult to pay all the bills at a single time, then some of the creditors may allow you to move you pay dates.
Insurance and other property - Change the beneficiaries on your insurance policies and also in your will. Since during divorce assets will usually be divided between the spouses it would a be a good idea to know how much money is at stake at what assets the spouse may have right to.
Going through a divorce is a difficult transition, and it is a good idea to always plan ahead to minimized the amount of stress that you will go through in future. Moving ahead in your life will be much easier if you can take care of some of your problems beforehand.
If you are few of the lucky couples who will end up being together again, it will never hurt to start your life afresh being financially strong.
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