How to protect money in case of separation or divorce?

Owning each account and segregating assets is critical to taking care of your own funds in the event of a marital separation. Remaining financially independent and looking at the situation with some expectation are some of the ways to manage savings. But if there is still no way to work them out, the best thing to do is to seek the advice of a family lawyer for advice on the best ways to protect your money in the event of a separation or divorce.

Ways to preserve money

One of the ways to preserve money in divorce proceedings is through a checking or savings account opened and signed by both of you. This way, you will have equal rights to get the money and do whatever activities you want.

Couples often have a credit or debit card linked to their checking account, but this is not enough to maintain the other part of the monetary autonomy of the marriage when they decide to separate. Both of you must be the cardholders, not just the beneficiaries of those cards, otherwise you will lose all rights to transfer the funds in your accounts.

Another way to secure your money in case of divorce is to have separate checking accounts, as this will help both parties achieve financial freedom. In addition, it can be very beneficial for both spouses. This is one of the most efficient ways for both spouses to manage their savings and meet the most necessary expenses.

On the other hand, if property division is done, it provides greater financial independence for both parties. The couple will keep all the assets they owned before the marriage, and if they opt for this economic system, they will have the added advantage of a simplified process. Finally, if an inventory of the property is kept, economic independence will be regained very quickly. It can be formalized before a notary or a solicitor in order to obtain a faithful account of the assets owned by each spouse. Its usefulness is based on the fact that from the moment of the separation, the attributes will be distributed between the two parts of the process in a fair and balanced way.

What about the mortgage?

One of the biggest problems in the divorce process is when you live in a house where the mortgage is still in effect, i.e., there is no amortization. There are many options for dealing with such a situation. One of them is for one of the parties to stay in the property after reaching an agreement with the other party. The other is based on reaching a compensation agreement to reduce the exposure to this action. But, in any case, it requires a strong will on both sides.

What happens to checking accounts after divorce?

Assuming that money is the easiest asset to divide, this will generally depend on the institution of marriage in effect at the time of distribution, whether it is fair or not. Married couples with separate property or couples who have separated amicably should easily determine their fate after divorce. However, experience has shown that most couples need to go to a judge to determine their property. The judge will determine each couple's assets and liabilities based on the law and the specific circumstances of each couple.

What are the options for managing the loan when the couple dissolves?

Applying for a loan as a couple is common because the chances of getting a loan increase when both holders are in the contract. However, divorce of a half-indebted couple is complicated. If both spouses are responsible for repaying the loan in installments while living together, divorce will not eliminate that obligation. The first and simplest option is to split the payment in installments. To do this, it is sufficient to leave a checking account in which both are listed as account holders and in which the monthly amount is recorded. However, this option is not optimal for all the ex-partners, since for it to be given, the rupture must be amicable, or at least cordial.

Another option could be to change the ownership of the loan to only one of the spouses. In this way, the other party has no debt. However, we have warned that not all the financial entities allow this option, since it supposes to lose the holder, or similar, the guarantee of payment.

Otherwise, there is always the option to cancel the loan completely. Logically, this is the best option for both parties, since the debt will cease to exist. The problem is that it is difficult to execute because the necessary funds are needed to pay off the loan early. One solution they may choose is to sell the asset and use the proceeds of the transaction to pay off the debt.

¿Qué pasa si uno de los dos deja de pagar las cuotas?

If the loan continues to be divided after the dissolution of the couple, but one of the two stops contributing his or her share, the other will also be affected.

If this happens, the best thing to do is to continue paying the installments of the debt as normal, and then go to court to reclaim what the other party stopped paying.