In a Divorce, Don’t Forget the Details
If you look up “what are the most stressful life events,” divorce is second – right behind death of a spouse.
In some ways both are synonymous. Each involves a death of sorts, and there is something else these events have in common. Both will require you to make critical, potentially life-altering decisions at a time when your mental capacity is taxed by stress. But in both cases, the decisions will need to be made quickly and thoughtfully, because most will be irrevocable.
Everyone can list the major decisions involved in a divorce:
- Child custody
- Disposition of marital home
- Support payments
- Division of major assets/liabilities
These have to get resolved and they are on everyone’s radar from day one. But in the heat of “battle,” don’t lose sight of those other issues that, if left unaddressed, can cause additional expense, emotional pain, and wreck havoc with future relationships.
Chances are, if you’ve been married for a number of years you have joint credit cards with your spouse. It is often simpler to pay these off before the divorce heats up. It doesn’t really make sense to have your attorney negotiate with opposing counsel over a $300 Target balance, but if you forget, it will need to be on the table. And even when there is no balance, if the card was issued jointly it could be a problem down the road. Call the company to determine how you can remove a currently authorized user. Sometimes it’s fairly easy and sometimes not, but it must be done. Remember that removing a user is better than closing an account completely for credit score purposes, but sometimes you won’t have a choice.
This situation will be similar to the credit card scenario. Utilities (including phone, cable and Internet) are often joint obligations. Obviously, whoever is to remain in the house needs to have the control and the liability. So check them – the departing spouse should assure that he/she is no longer connected to the utility accounts. You may to have to jump through a hoop or two to remove a name, but it will be worth it.
Some club memberships include a credit account. Even if yours doesn’t, at some point you’ll need to separate yourself from your ex so Sam’s, Costco, and others treat you as an individual with (in same cases) a new address. Besides, do you really want your ex to know about your shopping habits?
This can become an issue, particularly if it’s not resolved early before things get heated. Consider what might happen during a custody battle if your viewing habits suddenly became public information. It might be embarrassing, or it could (depending on what you watch) become a morals issue used against you in court to take away your child(ren.) Tread carefully during custody discussions – you don’t want anyone to think your home activities create hazards for children.
It is common in a settlement agreement to include language stating that one spouse cannot slander or speak badly of the other. This is usually to maintain the relationship with a child or children. But don’t forget that slander can apply to others. What if your ex-spouse decides that his or her new favorite activity is bad-mouthing the person in your current relationship? It’s hard to prove in court, but the parties will know exactly what is happening. Unless it is prohibited, either specifically in the document or by some broader statement, a situation could develop where your friends, relatives, and kids become a sounding board for your ex’s complaints and comments. Don’t let this happen – be sure you protect yourself.
There are many more areas of entanglement that must be severed prior to divorce. Go through your wallet or purse and look at everything – chances are you will find more. Gym memberships, anything that is autobilled like yard service, reward program points – the sooner you address these the better. By paying off bills, separating or closing joint accounts, dropping users, and protecting yourself from torment, you save time and money during your divorce. It is also easier to resolve these issues early before emotions take over.
Feel free to contact us if you have any questions on settlement agreements or divorces.