Here’s the dark reality of finances in divorce.
When you’re a working girl, your income is cushioned with that of your spouse’s. The two incomes together absorb what what are known as hidden costs – expenses often borne by the other partner because of certain benefits accruing to them, while running a household or even living a certain lifestyle.
(A company paid holiday is the perfect example of a hidden cost.)
But when going through a divorce we must be prepared for a financial realignment to minimise the impact of the reduced income. Besides the legal battle which is fought in court, one has to take charge of what goes in the workplace.
Why You Should Speak to Your Boss
If you are going through a divorce, the first step should be to speak to your immediate boss.
There’s no point in hiding it, because you will be called to court – and for that you’ll need to take leave. The court asks you to be present at a certain time, either at 11 am or after lunch around 2.45 or 3 pm so it’s pointless to waste an entire day’s earning when you could do with a half day. If you have flexi working hours then perhaps even that day’s leave could be saved by coming back to the office after court.
So really, (in case you had any doubts) telling the boss isn’t an emotional decision; it’s a sound financial one.
Incidentally, HR should also be informed about it because they’re the ones who will get summoned by the court, if required, to find out about your salary and other details. Telling them will not only save you embarrassment in case they are called – but will also prepare and caution them about/against sharing your information with your spouse or his representatives.
Divorcing Your Spouse From Your Money
Separating out any joint accounts you have with your spouse is important. This way your spouse doesn’t have access to your money or income anymore.
Opening a new account in a single name in a new bank is the safest route to take. I don’t advise my clients to open a new account in the same branch as you may have been going to the branch as a couple and the bank may not know the change in the marital status. As a result, they may inadvertently – or even at times knowingly – share the information.
Make sure you do the same in case there are any joint safe deposit lockers.
If there are any joint loans that you can exit out of easily then do so at the earliest so that any liability incurred by your spouse doesn’t have to be borne by you. It may be a joint credit card loan, or a vacation loan or an overdraft – but his inability or commitment to pay it should not impact your credit rating and have the creditors line up outside your door!
The finances in divorce are bound to suffer – but I look at the bright side and think that at least we have a job that keeps us going!
And hey, if you decide to change your job for greener pastures – don’t bother informing your spouse.
Till next time, keep smiling and be happy,
...Your D-Bomb Specialist.
(Vandana Shah is an award winning lawyer, author and columnist.)
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Going From ‘We’ to ‘I’: A Divorce Lawyer Tells You How to Cope
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