Once you decide to divorce, you don’t want to wait a single day to review your finances with the idea of making the right decisions at the right time.
There are many steps you can take to help you financially prepare for divorce, including but not limited to the following:
- Gather all your financial records and documents. It’s better to be safe than sorry, so you don’t want to leave any stone unturned. Some of the many things you should collect include bank statements, retirement account statements, tax returns and pay stubs. You may not need everything, but the more you have at your disposal the better you’ll feel.
- Take note of your assets and debts. Since matters of property and debt division are often a sticking point in divorce, you need to have a clear idea of where everything stands from the start. Also, keep in mind that your soon to be ex-spouse may attempt to hide assets from the court.
- Open individual accounts. Once you decide to divorce you should no longer commingle funds with the other individual. You need to open individual accounts, such as a checking account, savings account and credit card.
- Create a budget. It’s one thing to know your assets and debts as you move into divorce, but it’s another thing entirely to create a budget that will help you remain on solid ground once you finally put your marriage in the past.
- Eliminate or reduce expenses. Since you may not have as much money now that you no longer have the other person’s income, it makes sense to eliminate or reduce expenses where possible.
Also, don’t hesitate to seek professional assistance along the way. For example, a tax professional can review your situation and provide advice and guidance to help prevent future complications.
These are the types of steps you can take to financially prepare for divorce. You can’t be prepared for everything, as you never know exactly what will happen, but you can definitely try.
When you combine knowledge of your finances with your legal rights, you’ll feel good about your ability to make your way through the divorce process in an efficient manner.