What Steps Should You Take to Protect Your Finances During a Divorce in Virginia?
The most important step is knowing what is in your financial life. Too many people let one spouse manage the money and have no idea where it is, where it is going, or where it is coming from.
Attorney Shameka L. Rhoades of Trustice Law Group explains the practical financial steps every person should take during a divorce, from gathering documents to protecting business interests to avoiding the biggest mistake she sees. In this segment from ABC’s Showcase Richmond, Shameka covers:
– The most important first step: knowing what is in your financial life
– What financial documents to gather before filing, including mortgage statements, retirement accounts, and bank accounts
– How to handle business interests and investment accounts
– How to prevent financial sabotage by documenting and securing records
– The biggest mistake: agreeing to terms without seeking legal counsel
Watch the full segment below:
Start With What You Know, and Find Out What You Do Not
Shameka is direct about the first step: know what is in your financial life. That means knowing what bank accounts exist, what debts are out there, and what assets you own.
Too many people go into a divorce without this basic information because they let one spouse handle the finances. They have no idea where money is, where it is going, or where it is coming from. That puts them at a serious disadvantage from the start.
What Documents to Gather Before Filing
Shameka walks through the essential documents. Mortgage statements, so you know how much is owed and how the payments break down between interest and principal. Retirement account statements, to know what is in each account. Bank account records, especially joint accounts, so you know the balances before a spouse decides to withdraw money.
Investment account records are also critical, both for the divorce itself and for tax purposes. The more complete your documentation, the stronger your position. Learn more about the divorce process in Virginia.
Handling Business Interests
If the parties created a business together, Shameka emphasizes documenting the operating agreements and the business bank accounts. The goal is to make sure one party is not mishandling money in the business accounts.
Even if only one spouse is involved in the business, understanding the business finances is important because the business value and income may be relevant to the property division.
How to Prevent Financial Sabotage
Shameka’s advice is practical: document everything. And that does not mean physically copying every piece of paper. It means scanning documents and storing them somewhere secure, like Google Drive or OneDrive, where you can access them even if the physical copies are destroyed.
If a spouse decides to destroy records, you still have access to them. Digital backups are one of the simplest and most effective ways to protect your financial information during a divorce.
The Biggest Mistake Shameka Sees
This is the part of the segment that every person going through a divorce should hear.
The biggest mistake is thinking the other party has your best interests and agreeing to things they suggest without legal counsel. As Shameka puts it: “You are divorcing this person. They are not going to say, here is what we should do best for you.”
The second part: make sure you are reading everything. Do not sign anything being given to you without understanding it fully. And document everything from beginning to end.
Trustice Law Group: Virginia Divorce Attorneys Who Protect Your Financial Future
At Trustice Law Group, we help clients across Virginia take control of their financial situation during divorce. From gathering documents to understanding what you are entitled to, we make sure you are making decisions with complete information. We are a female-owned Virginia family law firm.
Real Law. Real Talk. Real Options.
Request a consultation or call us at 804-593-0788.
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FAQs
What is the first thing I should do financially when facing divorce?
Know what is in your financial life. Identify all bank accounts, debts, assets, and income sources. Gather documents for everything. The more you know going in, the better positioned you are.
Should I take money out of the joint bank account before filing?
No. Draining a joint account can be treated as dissipation of marital assets and used against you in court. Protect yourself by knowing what is in the account and documenting it, not by removing the funds.
How do I protect financial documents during a divorce?
Scan everything and store digital copies in a secure cloud location like Google Drive or OneDrive. If physical records are destroyed, you still have access to the information you need.
What if I do not know anything about our finances?
Start gathering whatever you can access. Bank statements, tax returns, mortgage records, and retirement account statements are available through online portals and financial institutions. Your attorney can also obtain records through the discovery process.