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Four financial tasks you should complete to prepare for your divorce

On Behalf of | Oct 31, 2024 | Firm News |

Divorce is tough on everyone’s finances, but just how tough it is depends on where you stand financially and what steps you are taking to prepare. Regardless of where you stand with your spouse, whether or not you get along, things often change during the divorce proceedings. Remember this while you prepare so an unexpected event does not shake you.

During this challenging time, focus on:

  1. The first thing you should do is gather your financial documents and give them to your attorney. This process can take some time because you must gather tax returns, pay slips, investment documents, retirement plan account information, and more. Organizing these documents and giving them to your attorney will help during the negotiating stage of the trial.
  2. If you and your spouse have joint checking, debit or credit accounts, consider the possibility of applying for an account solely in your name. Do not move around assets without discussing it with your attorney first, as that could get you in trouble in court.
  3. Develop two budgets: one that represents what is coming in and going out now, and another adjusted to represent what you think you will have and believe you will need after the divorce. This can help your attorney get you as close to that number as possible.
  4. If you have complicated finances, for example, if you and your spouse share a business or you contributed significantly to your spouse’s company, consider hiring a financial expert who can assess your financial situation, project future income and expenses, and more realistically plan for the division of assets.

Even though many people think that divorce begins when they first file, in reality, there are many things you can do in advance that will help you in later stages. Being prepared will get you started on the right foot and help you transition smoothly into the next chapter of your life.