The division of marital property and debt is part of the Illinois divorce process. Assets such as bank accounts, real estate or retirement accounts have to be split in a fair and equitable way, which can require significant planning and negotiation.
A common question that comes up, especially in a high-conflict divorce, is what to do with the accounts spouses share. The last thing someone wants is his or her spouse to run up high credit card charges on a card that has both spouses’ names on it. So what precautionary steps should divorcing parties take in the short term after they decide to end their marriage?
First, you will want to let the bank and the credit card company know what the situation is. The card company can stop any attempted charges your soon-to-be ex tries to make to protect you from unauthorized spending. Next, each party should set up his or her own checking and savings accounts and make sure that any direct deposits of paychecks go into the correct account.
Since many divorcing couples don’t stop sharing expenses until after the divorce is finalized, it may be appropriate to open an escrow account with your spouse. An escrow account is contractual, and the parties to the account agree upon the conditions of the transactions using a third party to disburse funds. An escrow account may be especially helpful if the divorcing spouses have children together or other shared debts that may require timely payments. When the divorce is finalized, the account can be closed.
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Decades of Experience in Illinois Family Law Courts
Knowing as much as you can about the divorce process and marital asset division can help you prepare for negotiations that will likely affect your financial and family life for many years. It is important to consult with an experienced family law attorney to establish the best possible plan for ending a marriage. Contact the Libertyville, Illinois law offices of Ronald L. Bell & Associates PC for more information today.