A prenuptial agreement is well-known for serving a dual purpose: it protects each member of a married couple both throughout the marriage and during divorce if the marriage ends in divorce. Go to these guys Alberta Divorce Finances
Some people believe that signing a prenuptial agreement is a good method to budget for your wedding.
Others argue that a prenuptial agreement is a good method to budget for divorce.
Whatever school of thought prevails in this argument, the reality remains that being prepared for any eventuality in life is the wisest course of action. And part of that preparation includes building financial security, especially in the event that divorce financial planning is required in the future.
How can divorcing couples budget for the likelihood of such a traumatic event?
Financial planning for divorce entails a number of things that each person can take to safeguard their capacity to function financially once the marriage has ended.
When it comes to money and divorce, one of the most important things to remember is to have a credit history.
In the vast majority of marriages, one partner is responsible for paying the bills. And, in most cases, the individual in command of this action is the same person whose name appears on the account.
As a result, each time a payment is paid on time and in full, that person’s credit score improves, but his or her spouse’s credit score is unaffected because the account is not in his or her name.
One spouse riding on the financial backs of the other is an all-too-common occurrence that only leads to future divorce troubles, such as the inability to develop a high credit score.
Because a good credit score is necessary for obtaining certain life privileges (such as buying a car, opening a credit card, or obtaining a new mortgage), one way to avoid potential financial issues after divorce is for both spouses to share household accounts in both their names, or to keep separate bank accounts for the sole purpose of maintaining a good credit score.
Divorce and financial problems don’t end there.
Debts can make a divorce ugly and turbulent, especially when they grow many and border on uncontrollable.
There are far too many stories in which one party learns that his or her spouse intends to file for divorce, and that individual then decides to go out and spend as much money as possible in order to make each individual fifty percent accountable for repayment of those binge goods.