Do Not Change When Starting a Divorce
You’ve made the choice to look into divorce. Now you’re looking for attorneys and getting ready fo file your paperwork. At this point in the process, people often feel an urge to start making changes in their economic situation to reflect their divorce. However, do not change these five things:
Do Not Change Funds from your Accounts To Keep Them From your Spouse
It’s natural to want to withdraw your funds to ensure they stay in your hands. However until the court finalizes your divorce, you must share any funds. If you first empty your shared bank account to ensure you have the funds short-term, it may make it harder for you to hold on to them in the long run, depending on the final Divorce Judgement. Further, your actions may reflect poorly on you in the eyes of the Court, which could reduce the likelihood of a preferred outcome.
Do Not Change your Beneficiaries on Your Life Insurance Policy
Similarly, it’s normal to want to remove your soon-to-be ex from your life insurance policies. If I die today, why should they benefit? Again, life insurance policies play a role in your ultimate settlement. Making changes too early may put you at risk of facing additional hearings significantly raising the cost of your divorce.
Do Not Change Your Spouse from your Health Insurance Plan
Healthcare coverage is a significant issue in divorce. It is up to the court in litigation or the two parties in mediation to decide on a final arrangement. Until the the court finalizes the divorce, removing your spouse from your health insurance plan will likely result in a motion from your spouse, more court hearings, and more costs for you.
Do Not Sell Any Marital Property
Wisconsin is a “Community Property” state. This means that all property either spouse acquired during the marriage is shared property. If you sell any shared property, without the permission of your spouse, you can land yourself in very hot water with the Court. This is why many initial divorce orders explicitly direct you not to sell any joint property. In this case, doing so could result in fines or worse for violating an order.
Do Not Increase Your Debt
While most courts will equally share assets in Wisconsin marriages, courts will also equally divide debt between spouses. If you go on a spending spree during your divorce expecting to split the debt equally, you will be unpleasantly surprised to find the Court disagrees. You may end up facing the entire new debt yourself, and it may reflect poorly on you if it appears you were trying to push your debt to your spouse. Wait to make any new major purchases until your divorce is final.
Want a more affordable, healthier divorce than court litigation? Click here to learn more about the many benefits of divorce mediation.
Lisa Derr
Lisa Derr is an experienced Divorce and Family Mediator with three offices in east central Wisconsin. She started the family mediation practice in 1995. Lisa earned her BA in psychology from the University of Wisconsin in 1984 in four years despite a serious car accident that involved a 2-month hospital stay. She began practicing law in 1987. For the first 8 years of her career, Lisa litigated personal injury and divorce cases. But she was frustrated with the tremendous financial and emotional cost of divorce trials. Contested hearings inhibited reconciliation and healing for thewhole family. She started the Beaver Dam divorce mediation practice in 1995 and with her partner, Cassel Villarreal, expanded to Oshkosh and West Bend ten years later.