A divorce can have some negative financial implications. You must take one household and split it into two, which can be tough. You and your spouse may have to split everything equally or close to equally, which can greatly reduce your net worth.
However, there are things you can do to help protect yourself. U.S. News and World Report explain you need to be aware and involved with your finances to best protect them as you move through the divorce.
You should be completely honest with your attorney and the court about your financial situation. Never try to hide assets because the court will catch you and hold the actions against you. Hiding anything could lead to you losing it. It is much better to be open and honest about all your assets and your complete financial picture so that you can get a clear and legal ruling on ownership.
Separate from your spouse
As soon as you file for divorce or once you know you will file or your spouse will file, you should separate your finances. You should open your own bank accounts and remove your name from any joint accounts. You will want to avoid taking all the money from a joint account, even if you were the one to earn it all. It is community property, so the better choice is to split it and take only half.
Know your finances
If you are used to letting your spouse or a financial advisor handle your money and assets, now is the time to make sure you know what is going on. You need to know what you have and where it is to best be able to protect it.
Taking a few steps prior to your divorce or right at the beginning can allow you to better plan ahead as you work to divide your marital property.