There is a lot going through your mind as you move toward the beginning of the divorce process. Since you have your eyes set firmly on a better life in the future, it’s critical to understand your current financial situation.
One thing you’ll quickly learn about divorce is that it requires quite a bit of paperwork, including financial records and documentation.
These are the types of financial documents to gather as soon as possible:
- Tax returns
- Payroll stubs
- Bank account statements
- Retirement account statements
- Credit card account statements
- Copies of bills
- Investment accounts
- Property information, such as mortgage statements
As you collect this information, it’s also a good time to create a property division and debt checklist. This will provide you with guidance during your divorce, such as when negotiating with your soon-to-be ex-spouse in mediation.
How much is too much?
You can never have too many financial documents on hand during your divorce. As a general rule of thumb, collect five years’ worth of the documents listed above, when applicable.
Also, it’s good practice to make copies of all your records, as you never know when something could go missing.
There are many challenges related to divorce, including those associated with the financial implications.
If you want to live your best life in the future, it’s critical to bring stability to your finances as quickly as possible.
When you combine the right financial documents with knowledge of your legal rights and the divorce process, you’ll have the confidence you need to make informed decisions along the way.