Ways To Prepare Financially For Divorce

Ways To Prepare Financially For Divorce

For some parting couples, there is no amount of counseling that can prevent a divorce, and that’s okay. Some people are supposed to go separate ways, even when they had intended to keep their relationship intact for the rest of their lives. During such a difficult time, it’s important to watch out for your emotional and financial health. Divorce is tricky, even in the most cordial of separations. Here are ways to help prepare you financially for the divorce process to come:

Take well-intended advice with a grain of salt. 

Once your friends and family find out you are going through a divorce, they are likely to offer advice that is well-meaning, but may not apply to your situation. Every divorce case is different from the rest, simply because the people within the marriage are different. And, divorce laws vary by state, so take insight or suggestions from loved ones with a grain of salt, and consider speaking with a lawyer for legal counsel instead. 

Track current spending and future expenses. 

As soon as you know that divorce is happening, start tracking your spending on items like household necessities and others. This can help build your budget after divorce, and may be used to judge how you and your spouse will divide assets and debts. Furthermore, look past your monthly expenses and think about what your future costs would be like. 

Gather factual and helpful documentation. 

Your financial records are going to tell the story of what your marriage’s financial health was like. These documents can take time to find and request copies of, so don’t hesitate to get help from a lawyer for this task and more. You will have to disclose your finances during divorce, and these types of paperwork are essential:

  • Retirement accounts
  • Checking and saving account statements 
  • Ledgers for auto loans, mortgages, and personal loans
  • Investment accounts for the previous year
  • Recent pay stubs
  • Credit card statements for the previous year
  • List of debts and assets within the marriage
  • Income tax returns for the past few years

As our divorce lawyer friends from Farkas & Crowley, P.A. would agree with, it’s best to start early on gathering financial documentation so you aren’t left scrambling before negotiations begin.