Divorce represents a huge transition in most people’s lives. While you may be ready to separate from your spouse, you should also plan for the financial aspect of this change.
Once you are divorced, you will be in a single-income household and in charge of all financial decisions. Some tips to help you financially prepare for this can be found here.
Gather financial documents
If you have taken a backseat to financial decisions for years, you need to figure out what’s going on. This requires you to gather bank statements, retirement account information, tax returns, investment information, mortgage statements, and anything related to your financial situation.
Getting a clear picture of your financial situation before a divorce will help you ensure you get a fair settlement in the process.
Document all your costs
You need to know what your expenses are. Take time to gather receipts for the past three months and credit card statements and then break down your spending into categories. Knowing what you need to live is essential when filing for divorce.
Open your own bank account
Make sure you have your own bank account. It may be wise to choose a bank separate from where you have your joint accounts. (Do not, however, drain your existing accounts without legal guidance. That could get you into trouble down the road.)
Preparing for a divorce
Divorce is challenging even in the best situations. Taking steps to prepare for life after divorce is a process and something to think about early, sometimes even before you file. Understanding your legal options will pay off.