The decision to separate joint financial accounts during a divorce is crucial, yet many Tennessee couples struggle with the timing. Understanding when and how to divide these accounts can protect your financial future and simplify your divorce process.
Why timing matters
Consider separating joint accounts as soon as you are certain about divorce. Waiting too long could leave you vulnerable to your spouse’s spending habits or financial decisions that might affect your credit score and financial stability.
First steps to protect yourself
When separating finances, it is important to take steps to protect yourself. Start by opening a personal account at a different bank and directing your income there. Document all account balances on the day of separation and keep detailed records of transactions for transparency.
What about bill payments?
Even though you are separating accounts, you are still responsible for joint bills. Create a written agreement for bill payments and consider a separate account for shared expenses. Keep records of all shared payments to avoid misunderstandings.
Common mistakes to avoid
Be cautious of common pitfalls. Do not empty joint accounts without agreement or close them without discussing it with your spouse. Address joint credit card accounts, and ensure you document everything to prevent future issues.
Legal considerations in Tennessee
Tennessee law considers all money earned during marriage as marital property, regardless of whose name is on the account. Before making any major financial moves, consider consulting with a divorce attorney. Document your actions and keep copies of all financial records. Your attorney can guide you through the process and advise you about timing.
Proper planning and guidance are important
Remember, separating finances is a significant step that requires careful planning. While protecting yourself is important, acting too hastily or without legal counsel could complicate your divorce proceedings. If you are thinking about getting a divorce in Tennessee, it would be a good idea to speak with an experienced family law attorney who can guide you through this process effectively.