The American Dollar
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Our Story: Both my wife and I are 27 years old and have gone through financial hell and back. Now we are on track to financial freedom, however we are not financial advisors or professionals, just everyday people. Share our journey from a negative networth and email us if you have questions or comments! :)


Tuesday, July 12, 2005

Does a joint bank account add to debt problems?

Besides the emotional turmoil which divorce entails, there is often the anguish of unforeseen financial matters such as debt and personal assets to contend with.

Urgency to make a fresh start can cause many individuals to make hasty decisions when going it alone and there are many bogus companies who will happily take advantage of their situation. If you are not careful, the result has been known to get quite serious - even to the extent of bankruptcy or getting an IVA (Individual voluntary arrangement)

Watch out for companies who promise to sort out your debts upon payment of a fee. Free debt advice is just as easily available; always look out for trusted companies that can offer a range of advice on IVA’s debt solutions and also bankruptcy and loans. Its also important to find debt advice that is unaffiliated and unbiased, that way you know they have your interest at heart.

In order to be able to cope with added debt, you need to obtain a clear indication of exactly how much more you need to find each month. You should also list the contact details of your creditors in order to pay them quickly and efficiently each month. Work out your new budget and ensure that your primary utility bills receive priority attention.

Does a joint bank account add to debt problems?

If you have a joint bank account, you should ask the bank to freeze it so as no-one can take out more than the other. Alternatively, you could ask the bank to make up a new arrangement where both signatures have to be used for any withdrawals. One last option would be to close the account completely and work out an amicable agreement for each of you to receive an agreed sum into your personal bank accounts.

If you have joint credit cards and you are the main account holder, you could ask the company concerned to cancel your ex-spouse’s right to use the cards.

These small steps can prevent your ex-spouse from running up further debt on your accounts whilst your divorce is pending is here!

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