Professional
Beauty from Ashes:
What happens to my finances when a separation/divorce occurs? Are there ways to protect myself?
Critical Transitions Wealth Advisors Stephanie Y. Vokral, CFP®, AIF®
Assisting Women in Transition
T
here are women reading this who are going through the transition of separation and/or divorce. What happens with her finances during this time?
Stephanie: Many times, this transition can be scary because each spouse may have different ideas of what their finances should look like and how they should be spent and separated. It’s good to have some mediation, either through their attorneys laying out a marital settlement agreement or going to a professional mediator. An inventory will be taken of all the couple’s assets and liabilities. If an agreement cannot be reached, the court will divide the assets and debts by deciding what is equitable or “fair”. It is important to understand that regardless of any agreements and decrees, creditors see marital debt as joint. She could potentially be held liable for joint debt even after the divorce is final. W2W: What are some ways women can potentially protect themselves?
creditors as this could hurt an individual credit score. Close all joint accounts as soon as feasible. Ask to have these joint accounts frozen and possibly separated into an individual name. Having the account in an individual name will also help establish individual credit history. Terminate “user” status on a spouse’s credit card; this may remove questions from that point on of involvement in the debt accumulation. Document everything; get things in writing, if possible. Be proactive and have a good understanding of all debts/ assets and why. In addition, it is important to have some emergency funds should access to joint accounts be cut off. For further protection, change all passwords. Join Stephanie by kicking off the New Year at her FebruaryLunch & Learn for women only discussing this topic further:
WHEN: February 26th, 2015 Stephanie: Don’t be late paying at 12 noon
Many times, this transition can be scary because each spouse may have different ideas of what their finances should look like and how they should be spent and separated. Stephanie Y. Vokral For more information, contact Kim Powers at k.powers@lpl. com or call (803)920-3519 Stephanie Y. Vokral, CFP®, AIF® Wealth Advisor Critical Transitions Wealth Advisors 7911 Broad River Road, Suite 200 Irmo, SC 29063 Phone: (803)920-3519 Fax: (803)749-7674 stephanie.vokral@lpl.com
This information is not intended to be a substitute for specific individualized legal
advice. We suggest you discuss your specific situation with qualified legal counsel. Securities offered through LPL Financial, Member FINRA/ SIPC. Investment Advice offered through Independent Advisor Alliance, a registered investment advisor. Independent Advisor Alliance and Critical Transitions Wealth Advisors are separate entities from LPL Financial. www.lexingtonwomanonline.com
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