As you are heading toward divorce, you need to start getting prepared for the many challenges you will face. Men and women generally face different issues during and after divorce, so it is crucial to be ready for unique problems you will have to deal with. So how do you know what problems you might have?
Generally speaking, men make mistakes when it comes to credit, real property and retirement assets. Here is what to avoid so you do not put yourself at a significant disadvantage.
1. Keeping joint accounts open
You might have opened a credit card with your wife. Closing this account following your divorce must be a priority. As long as her name stays on the account, you are responsible for anything owed on the card. While closing down the account might temporarily reduce your credit score, it can help you avoid your ex-spouse defaulting on payments or running up the balance.
2. Staying on the mortgage after giving up the home
You might let your ex keep the family home so you can get more custody or visitation with your children. While this might be a viable decision, make sure you do not leave your name on the mortgage. If your ex is not able to keep up with the mortgage, taxes or insurance, the home could go into foreclosure. Your FICO score could take a serious drop if your name remains on the mortgage.
3. Giving over retirement assets
If you contributed to a retirement plan during your marriage, you might need to divide these assets as part of your settlement. You do not have to automatically give your former spouse your retirement funds. Instead, you could offer something of comparable value so you can hold onto your plan.
Avoid these mistakes and others in this AskMen article if you want to come out the other side with financial stability.