Sometimes, the sad truth is that no amount of couples counseling can save a marriage, and it is just better for all parties if they split, get a divorce, and go their own way. Not only is the process emotionally draining, fraught with conflict and arguing, and legal issues over seemingly every detail, but it is also a strain financially. Bills add up, and as most couples have shared income, accounts, and property, things get complicated when it is time to split up. Long before custody has been resolved or child support has been given or not, you need to prepare your finances, get what you can in order, and be ready for what may come. This text will go over some tips for the financial side of divorce.
Get Help
The first and perhaps most valuable piece of advice anyone can give you when it comes to divorce is to get help. Legal help. Lawyer up. Reach out to professional attorneys like those at the trusted Smith Law Office to help you. When a lawyer is at your side, you honestly do not have to worry about a thing anymore; all you have to do is listen to what your lawyer says. You have almost no chance to get through the divorce process on your own; there are so many laws, regulations, and red flags to watch out for and avoid that you simply need a legal expert who has been through this whole process countless times before and can navigate this complex world of the law almost in their sleep.
Track Your Expenses
As soon as you realize that a divorce is on its way and is inevitable, it is time to start tracking all your expenses and household income. If you want to build a budget for after the divorce, a detailed list may go a long way, and it will also be extremely helpful to your lawyer, and later on perhaps the judge who oversees the case, when it is time to decide how to split the debts and assets, and whether child or spousal support should be awarded or not. If you have already been keeping a budget, even better, as you now have a record that goes back for a long while. But if not, that is not a problem either. Just make sure you start now and include things like clothing, food, household bills, maintenance bills, child care, transportation, and whatever else you spend your money on.
Gather Documentation
Your financial records almost make up a story of your marriage’s financial health, and even though gathering all the documentation can be boring and take up way too much time, they are still important so it is best if you start as soon as possible, both so you get it over with and you have it ready when it is needed. You can start with retirement and investment account statements, credit card statements, and perhaps ledgers for any loans you may have taken, like personal or auto loans, your mortgage, and so on. Assets are also key, so make sure you have a list of all of them when it is time to divide your and your spouse’s assets, when you will be ready and have the receipts.
No Big Financial Decisions
How the divorce goes will ultimately decide all your major financial changes, and even though it may be tempting to get ahead of the race and make changes to things like your life insurance or complete a big purchase, it is highly advisable to wait. The last thing you want to do in such an already-high-stakes situation is jeopardize your case for no reason, so just wait for your attorney’s go-ahead, and avoid making large financial decisions. You do not have to watch every penny you spend, of course, but just do not buy a new car or something of the sort.
Own and Owe
Once you have all your documentation, it is important that you determine what you own, what you owe, and where changes may be necessary. Decide whether you want to retain or close individual or joint accounts, and identify where perhaps changes may need to be done, like names or addresses. Figure out whether you need or want to make any new individual accounts; just know that some accounts may need re-qualification. It is also a good idea to review and change all your passwords and PINs on your accounts, credit cards, and so on, just to be on the safe side.
Spend and Save Smartly
This sort of goes without saving, even if it weren’t for the divorce, but try to be conservative when saving and spending. Joint finances are complicated, and splitting them can be very sticky and a lot of the process depends on regional laws and how they handle debts, assets, and income, like as one pot. If you empty that pot, or even just stick your hand in further than usual, figuratively speaking, the time leading up to your divorce, it may prove detrimental to your case. Make sure you are transparent with your spouse about all financial matters, even though it may prove strenuous, to say the least.
Financial Advisor
If you are very confused and have too many variables to consider and try to figure out, it may be a good idea to just talk to a financial advisor. Someone who specializes in all things concerning money and bills and debts and assets and alimony and so on can be very helpful if you have just started the divorce process or maybe if the divorce is already behind you and you just want to know how best to start approaching the future where your money is concerned. Make sure you consult your attorney first and see what they have to say, as chances are they already have one on call for you.
A divorce is always messy and emotional, there is no such thing as a pleasant, easy divorce. However, it does not have to be a nightmare with a little planning and help.
