Going through a divorce is tough enough without having to worry about financial deceit. Unfortunately, it’s not uncommon for one spouse to try to hide assets or manipulate finances during this emotionally charged time. At Purposeful Wealth Advisors, we’ve seen it all, and we’re here to help you navigate these treacherous waters.
Let’s dive into how you can protect yourself from financial deceit during divorce and come out the other side with your fair share intact.
Know What You’re Up Against
Financial deceit in divorce can take many forms:
- Hiding assets or income
- Overstating debts
- Underreporting business profits
- Delaying bonuses or promotions until after the divorce
- Transferring assets to friends or family members
- Creating fake debt to offset assets
Recognizing these tactics is the first step in protecting yourself.
Do Your Homework
Knowledge is power, especially when it comes to your finances. Here’s what you need to do:
- Gather financial documents: Bank statements, tax returns, investment accounts – the works. Go back at least 3-5 years if possible.
- Track household expenses: Know exactly what it costs to run your household. This information will be crucial for alimony and child support calculations.
- Get a credit report: Make sure you know about all accounts in your name.
- Keep an eye out for suspicious activity: Unusual withdrawals, new accounts, or sudden changes in spending habits could be red flags.
Remember, the more you know about your financial situation, the harder it will be for your spouse to pull a fast one.
Build Your Team
You don’t have to go through this alone. In fact, you shouldn’t. Here’s who you need in your corner:
- A skilled divorce attorney who understands financial issues
- A financial advisor experienced in divorce cases
- A forensic accountant, if you suspect complex financial shenanigans
Having the right professionals on your side can make all the difference in uncovering and proving financial deceit.
Protect Yourself Now
While you’re gathering information and building your team, take these steps to protect yourself:
- Open individual bank and credit card accounts
- Change passwords on all financial accounts
- Monitor joint accounts closely
- Consider freezing joint credit cards or lines of credit
- Start setting aside money in a separate account if possible (but consult your attorney first)
These steps can help prevent your spouse from running up debt or draining accounts during the divorce process.
Look to the Future
While it’s crucial to focus on the immediate financial issues in your divorce, don’t lose sight of your long-term financial health. Consider:
- How the divorce settlement will impact your retirement plans
- Whether you need to adjust your career plans or seek additional education
- How to rebuild your credit if it’s been damaged during the marriage
- Creating a new budget for your post-divorce life
Planning for your financial future now can help you make better decisions during the divorce process.
Work With Us
At Purposeful Wealth Advisors, we specialize in helping clients navigate the financial complexities of divorce. We understand the emotional toll this process can take, and we’re here to provide clear-headed, objective advice to protect your interests.
Don’t let financial deceit derail your divorce settlement or your future. Let’s work together to protect what’s rightfully yours and set you up for financial success post-divorce.
Ready to take control of your financial future during divorce? Give us a call. We’ll sit down, review your situation, and develop a game plan to safeguard your assets and your future. With Purposeful Wealth Advisors in your corner, you can face your divorce with confidence, knowing your financial interests are protected.
