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When the love is gone

When Mr. Right becomes Mr. Wrong……         

One day, you awake to find the love is gone.

You and your partner are splitting up, and suddenly you face a huge and tumultuous change in your life. On top of all of the emotional turmoil, you are no doubt overwhelmed by all of the financial implications.

What will happen to the assets, loans and credit card bills? And – most importantly – what will happen to the house: Who will stay and who will go? What will you do about the mortgage?

All of these things require careful consideration, and the steps you take early on in the process can have a huge impact on the ultimate settlement and your life going forward. (You will have a life going forward!) To help, here are some suggestions for steps that you should strongly consider taking as you move forward.

STEP ONE – Make Some lists:

Most women love to make lists. Making this list is going to be somewhat tedious, but it may be the most useful thing you do as you move through your separation and finalize your divorce. Here’s the breakdown of your required lists:

  1. List all of your household ASSETS. You must list everything. This will be time consuming and require some work. Don’t forget your travel points! They should be listed as follows:
Asset Description Hers His Joint TOTAL
1
2
3
4

 

2. List all of your LIABILITIES. You must list everything.  Car leases/loans, lines of credit, student loans and all credit cards (even those department store cards and gas cards) must be on this list. They should be listed as follows:

Liability Description Hers His Joint TOTAL
1
2
3
4

 

When you are making these lists, you will start to see if assets and liabilities are jointly owned or in separate names. A very important step in the separation process is to make sure that both of you walk away with clean credit. This means that while things are being worked out, you need to make sure that the joint debts are kept up to date. If possible, work to have your name removed from cards that you do not have access to or that you are not using. If you do not have a card that lists you as the primary card holder, it is time to get some credit established in your name only.

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