You have finally come to the decision that divorce is in your best interest. While you’re worried about what the process will throw at you, you realize that tackling it head on is the only way to get through it.
One of the best ways to ease your stress and avoid mistakes is to prepare your finances accordingly. This often starts with answering the following questions:
- Do you have a clear idea of the assets and debts that will come into play during your divorce? Property and debt division is often a sticking point, so you need to plan accordingly. For example, a list of marital and separate assets will help you protect your rights before and during the divorce process.
- Have you created a post-divorce budget? Don’t assume that the budget you have always used will be good enough after your divorce is in the past. For example, now that you only have one income, you may need to adjust your spending.
- Have you closed joint accounts and opened individual ones? All joint accounts, such as bank accounts and credit cards, should be closed as soon as possible. While doing so, open individual accounts that you have 100% control over.
- Are you aware of any hidden assets? Don’t let your soon-to-be ex-spouse hide assets from the court, as this stops you from getting everything you deserve. If you’re aware of hidden assets, bring them to light as the divorce process begins.
- Do you need help? For instance, it never hurts to consult with a tax professional when going through divorce, as they can help you understand the impact on your tax situation now and in the future.
As you prepare for divorce, you’ll find that you have a lot on your mind. It’s imperative to make time for money-related questions and related details.
When you’re confident in your approach and have a clear idea of what you want to accomplish, you can effectively tackle the divorce process. By making the right financial decisions now, you’ll benefit in a variety of ways in the near and long term.
