After gathering information as needed to make your plan (suggestions provided in Part 2 of this series), additional preparation steps may be required to protect your financial wellbeing. This post provides insight into examples of the types of preparation that could take place.
Set Up Independent Accounts
If you don’t already have one, set up a personal checking and savings account for yourself as soon as you can before you go. Set money aside in this fund, aiming to cover your projected costs of leaving the relationship and reestablishing yourself. If you can’t safely do this, you might ask a trusted friend or family member to safeguard your escape fund. You could also appoint them with a Power of Attorney (it may only require a limited power of attorney) and they could create the accounts for you. Make sure your new account is listed only in your name and set up your account for electronic delivery of documents. Have them sent to a private email address your partner can’t access. If you’re concerned about your partner spying on your phone or internet activity, you could use an app like Parallel Space. It allows you to install apps inside of it and lock them behind a passcode.
If you already have bank accounts and your partner has access to them, or if they control the money deposited into a joint account, you’ll need to be very careful to not have any new income or changes in income hit those accounts. The same applies for checks in the mail. You can usually direct payments to multiple accounts if you elect for direct deposit. After you leave, you’ll want to update your direct deposit information so that the first paycheck after your planned departure date goes to your new checking account. If you need additional money before you leave, please check out Part 4 of this series: Suggestions for Gathering More Money for ideas on how to accomplish this.
Prepare to Change Your Insurance Policies
If you have health insurance through your abusive partner’s employment, for example, look into alternative coverage through your employer, the ACA exchange, or Medicaid. This may be of higher or lower priority depending on your personal situation and health, and the health of any dependents which you will be caring for.
Make a list of insurance policies you share with your partner, such as auto and homeowners’ or renters’ insurance. Start researching the costs of purchasing separate policies and use this list to remove yourself from shared accounts after leaving and/or obtaining your new insurance policies.
Protect and Build Your Credit
Request a free copy of your credit report from one of the three major credit bureaus via annualcreditreport.com, review the information, and report any fraud, disputed claims, or identity theft. Under FACTA (The Fair and Accurate Credit Transactions Act), you can get a free copy of your credit report every 12 months..
Make sure your partner didn’t open any lines of credit in your name that you don’t know about. If there is any fraudulent or incorrect information in the report, dispute the error with the credit bureaus.
To prevent your partner from borrowing new debt in your name, you can place a 90-day fraud alert with the major credit bureaus. This will make lenders verify your identity before issuing new credit in your name. Here are links to start a fraud alert with each of the bureaus:
You may also want to block access to your electronic Social Security record. You can request a block by calling the Social Security Administration toll-free at 1-800-772-1213. You can also find instructions for how to request a new Social Security number here.
Debt and Divorce
As a part of a divorce, debt that was built up during a marriage is usually split between the spouses, though not necessarily equally. What usually happens is the spouses will decide on a division of debt that they can both agree to, or a judge will divide the debt by looking at several factors. Depending on your state’s law, the judge may agree that your spouse is the only person responsible for certain debts if you can show they borrowed the money for things that only benefited them and had no benefit for the household. To figure out what your state’s laws say about the division of debt, and to find out about how the debt in your marriage might be divided in a divorce, we suggest you talk to a lawyer that’s licensed to practice in your state. Go to www.womenslaw.org to locate a divorce lawyer in your state.
Lastly, try to pay off any balances on joint credit cards (if possible) so that it will be easier to close the account and prevent an abuser from borrowing more debt in your name after you leave. Take screenshots or save account statements showing the balance on the account before you leave. If you’re unable to pay off what’s owed, call your lender and ask to remove your name from the account. This won’t remove your responsibility to pay back existing debt, but it may help protect you from having to pay for anything added after you leave your abuser.
Sources:
- Social Security Administration. “New Numbers for Domestic Violence Victims.” Accessed September 18, 2021
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