An important step when going through a divorce is to safeguard assets you already have. Think your spouse won't raid bank accounts, sell off stock, or cash in insurance policies? Guess again. It's been done to unsuspecting wives who thought emotionally, not practically.
Solid advice to any woman facing separation is to safeguard assets, transferring liquid accounts into your name alone. If your husband begs forgiveness, he may understand your resolve to protect funds. He might willingly sign any documents to effect this. But some banks will require only one party of a joint account to close it out and open another.
Other assets such as life insurance policies, stocks, mutual funds, bonds, and other investments are usually more complex. Most will require both parties' signatures to liquidate. However, don't let too much time pass before you review these, and safeguard them as well. Your husband's new girlfriend just might show up at a brokerage firm trying to sign your name to release funds, or worse yet, you may have forgotten that power of attorney you signed years ago. Notify all financial institutions of your separation and require them to ask for identification before your signature is signed to anything.
For instance, to prevent a spouse from running off with the cash value of a life insurance policy, you might want to become the owner of that policy. Courts can sometimes mandate that your husband maintain a life insurance policy at least while you are separated. If you followed strict guidelines of accumulating account numbers and balances, you should be in pretty good shape with a paper trail. Make copies of these statements for your attorney. The real tragedy occurs when a wife hasn't a clue what accounts they hold and what her husband's pension looks like. Remember, knowledge is power. Knowledge also means less anxiety.
One last caveat here on the subject of safeguarding. If you are tempted to dip into any marital monies during your separation, just remember that you will have to account for these funds at equitable distribution. This isn't play money. It's not even a loan. It's just money that you intend to protect until it can be divided equitably (not necessarily equally, mind you, but equitably). If support payments stop or fall behind and you need to protect a marital asset (such as your home) with this money to pay the mortgage, keep good records. And, of course, consult your attorney if you have one.
Listing # 0190 |
