It is important to prepare for financial independence well before actually filing for divorce. Having served hundreds of families since our Family Divorce Consumer Advocacy was formed in 2010, we have watched many suffer the costly pitfalls of not taking a few simple steps BEFORE they file for divorce.

If you have been financially dependent on your spouse for a large portion of your marriage it is possible that you may not have an independent credit history. Those that don’t have an established credit history may be required to shell out hundreds of dollars in deposits when establishing things such as new utility accounts and renting an apartment for temporary housing post divorce. If your name wasn’t on your family home mortgage it actually may not be possible to transfer it to you should you desire to assume the payments and stay in the home. There are several things you can do to overcome this.

Research with a mortgage broker if you are actually qualified to transfer the mortgage into your own name before you agree to this in negotiations

Add your name on all family utility accounts

Apply for 1 to 2 new credit cards in your name only using your family’s combined annual income and seek the highest credit limit possible. This may come in handy if you are temporarily cut off from family funds and you need to provide for yourself. Use them just a little each month by putting $25-$50 worth of charges on them per month and paying them off completely with each statement

Seek employment as soon as possible if you are not already employed. Judges do not view favorably an unemployed spouse who initiates divorce without a clear plan in terms of providing for themselves

Establish your own banking savings and checking accounts

Try to resolve as much debt on family credit cars as you canAlso during temporary separation but BEFORE your divorce settlement is finalized make sure to add your name to ALL family investment accounts that will be separated. If your name is only added to the account AFTER the settlement and you decide you need to sell some of those investments within 12 months after your name was added you could incur an unexpected hefty short term capital gains tax (28%-35%).

More financial tips in the Transitions Divorce® Prep Workbook

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Disclaimer: This is my personal blog. The opinions I express here do not necessarily represent those of my organization, Transitions Resource, LLC. The information I provide is on an as-is basis. I make no representations as to accuracy, completeness, suitability, or validity of any information on this blog and will not be liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its use.

The post Prepare for Financial Independence BEFORE Filing for Divorce first appeared on Divorce Mediation Center.