A divorce can be extremely emotional and disrupting to one’s life. Divorce also marks a major financial transition for both spouses, as well as their entire family. Navigating the financial implications after divorce is an essential step one needs to take if getting divorced. It is crucial to have complete transparency in order to manage shared accounts, income, debts, and to continue making payments and current financial obligations. It’s so important for one’s mental health and financial wellbeing to make sure the process is fair and equitable. Additionally, always consult with a Tennessee divorce attorney to help you understand the process and expectations.
The Importance of Honest and Full Financial Disclosure During A Divorce
From the moment one files for divorce, both spouses, as well as their respective attorneys, must have a complete and accurate picture of the household’s financial standing. While it is always best for people to settle any property settlement between themselves, the truth is that many spouses have a hard time working together and their divorce case ends up needing a judge’s intervention. Both parties owe a duty to be honest and transparent to each other and to provide each other with accurate financial information prior to finalizing any agreement.
In Tennessee, the law underscores this need for transparency: once a divorce petition is filed, each spouse is legally obligated to disclose all assets, liabilities, and financial information. A family court judge may ask for financial affidavits to a case, so it is important to be prepared. A person could be found acting in bad faith for failure to comply. Any unknown bank accounts, undisclosed assets, or secret debts must be fully revealed. It is not uncommon for a spouse to uncover unexpected purchases or liabilities that accrued without their knowledge during divorce, but transparency is required by law. While secret expenditures or liabilities might uncomfortable to admit to, they simply must be dealt with. This is to ensure equitable division, which deals with how assets and debts are distributed fairly. In order to do this, the parties need to know which assets are marital property (subject to equitable distribution) and which might be considered as separate property. Honest reporting ensures that property division will be fair and neither party gains an unfair advantage.
As such, in any divorce proceeding, parties should conduct a thorough audit of all shared financial obligations. This information includes joint checking and savings accounts, credit cards, mortgages, retirement plans, and any other debts or commitments that are shared with a spouse. By compiling a comprehensive inventory of combined assets and liabilities, it can save time, aggravation, and ultimately minimize attorney fees. People should also seek the guidance of an experienced divorce attorney to protect interests.
Managing Joint Finances During a Tennessee Divorce
After a divorce is filed, it can take months or even longer to finalize. As such, both spouses often continue sharing bank accounts and other financial resources during that interim period. It’s crucial, therefore, that each party remain fully transparent about spending habits during this period. Both spouses should document every transaction and, whenever possible, seek mutual agreement prior to making any significant financial decisions. Family courts scrutinize large expenditures closely, especially if there is any suggestion that one spouse may be depleting joint funds or otherwise taking advantage of the process. Maintaining clear records and communicating openly can help prevent allegations of misconduct and protect both parties’ interests until the divorce is complete.
Seek Financial Advice From A Tennessee Divorce Attorney
Divorce is not easy, and navigating ones’ finances during the process can feel overwhelming. If you are currently going through a Tennessee divorce, It’s vital to ensure that every asset and liability is fully disclosed so that property division remains fair and you secure everything you’re legally entitled to. Fortunately, L. Jennings Law has deep expertise in managing the financial complexities of divorce. Let us put our experience to work for you—contact us to schedule a divorce consultation and rest assured you’re in trustworthy hands.
