Any joint account you open will require a credit report being checked for both you and your spouse. Transfer assets to your spouse s name.
Tips for protecting your assets during a divorce open personal banking accounts.
How to protect money from spouse. Pay down and close all joint credit accounts you and your spouse hold together. There are some inexpensive simple ways to protect assets that anyone can implement. Debbie hartzman cfp clu cdfa tep and cea is a certified divorce.
If you don t already have a bank account in your name alone open both a checking and. Close all joint credit accounts. Keep it completely separate and only use what you want to for lifestyle spending considering it a gift to your spouse.
Staying single is the only sure way to completely protect yourself from a spouse s debt. A marriage contract can specifically state that an asset is not going to be included in property division calculations whether it is a matrimonial home or not. Your protection level will vary however depending whether you live in a common law or community property state.
If one spouse goes into a nursing care for the purposes of medicaid the individual going into care can only have 2000 in non exempt assets and the spouse remaining at home can keep half of the overall assets. The best way to protect a gift is to get the child and his or her spouse to sign a marriage contract. However if you divorce the end results could be different from what you.
Start by sharing your credit reports she says. Anything over half the assets plus 2000 must be reduced in order to qualify for medicaid. Carla dearing ceo of online financial planning service sum180 suggests asking several different questions of your soon to be spouse in order to get a more complete financial picture.
There are protections that can safeguard a spouse from her husband s financial responsibilities including from any tax debts he may owe. You can however help yourself by signing a prenup and keeping your debts and assets separate. There are also postnuptial agreements that can help keep assets separate to offer protection.