Divorce is not a fun topic to talk about, yet many women are affected by it. I want to share some tips with you that I've learned along the way by working in the Bank. If you are contemplating, in the process, or have completed a divorce, there are several things you should know:
1) If you and your spouse agree to split the monthly bills owed (house loan, car loan, credit cards, etc.)- be aware that if the accounts are joint, you will still be responsible for that debt if your Ex does not pay the bill. Your divorce decree will NOT protect you if the accounts are joint. You MUST have your ex-spouse close that account and open one in their name only. This would include refinancing a house or car loan. Most attorneys do not tell their clients this; I have seen so many people affected by this scenario, usually after the damage to the credit report is done.
2) Joint bank accounts allow each party on the account to withdraw funds at any time, without permission of the other account signers. The only way to protect your savings and checking is to close the account and open one in your name only. Be careful here- if the account is joint, your spouse is entitled to 1/2 of the balance. To be safe, withdraw your half of the account only.
3) If you own a home and you financed that home together- the only way to remove your spouse's name from the mortgage is to refinance. Alot of people are forced to refinance if the Ex wants their half of the equity and you do not have the cash to give them. If you have to do this, make sure your Ex files a "Quit-Claim" deed at the same time as the refinance closing, so that you own title to the home free and clear.
4) If you decide not to refinance and agree to pay your Ex their half of the equity at a later date, be aware that your spouse's attorney will probably file a lien against the property. If you pay your Ex, either in cash or with an equity loan, MAKE SURE you get a "Satisfaction of Lien" from them to file with the county recorder's office. I saw this happen to one woman: she agreed to pay her Ex $25,000.00 and took an equity loan out to do it. Many years later, she decided to sell the home and purchase another one. Prior to closing, it was discovered that there was a lien filed by her Ex on the property and guess what? He was nowhere to be found! He had moved out of state and left no forwarding address. I put on my "locator" hat and was able to track him down and obtain the Satisfaction so she could complete the sale of her home.
Have any of these scenarios happened to you? Tell us your story- it may help others to avoid the same pitfalls.
Comments