Divorce can get financially and emotionally complicated. If you’re thinking about a divorce or are already involved in the process, it’s a good idea to know your financial situation. Knowing where you stand will help you see the big picture and give you more control throughout your divorce proceedings.
It’s only natural that many of the decisions made in divorce are emotional, so having knowledge of your financial situation can help you be more practical with your monetary decision making.
Steps you can take now
To better prepare your finances for divorce, here are some tips to consider:
- Seek advice from professional sources. Your friends and family will have much to offer and while they mean well, they don’t know the particulars of your situation. At the very least, you’ll need a good lawyer and perhaps a financial consultant.
- Asses your financial picture. This will mean gathering your bank statements, investment information, pay stubs, tax returns, credit card bills and any other related information. When you have the big financial picture, you can make more informed decisions.
- Itemize your expenses, including future ones. When you know what you need going forward, you’ll be better prepared to ask for it in the settlement. Additionally, when you’re tracking your expenses, you can find ways to reduce your spending.
- Open a separate bank account and credit card to separate your finances and establish credit in your own name.
- Be conservative. Saving your money now can help you better handle legal fees and future expenses that may come with divorce.
Making some monetary changes and understanding your full financial situation will ensure that you are an informed participant in your divorce proceedings and give you more control throughout the process.