How to Prepare Your Finances for Divorce

 Posted on November 20, 2018 in Family Law

When you are married, that typically means that your finances are woven together, which makes things easier for you and your spouse to handle life’s expenses. This all changes once you decide to get a divorce. A divorce is not only the severing of your emotional relationship, but also your legal and financial relationship.

Like most things in life, diving into a divorce with little to no preparation is never a good idea. You should have certain things prepared and in order before you begin your divorce. Here are four ways you can get your finances in order before you begin the divorce process:

1. Take Inventory of Your Assets and Make a List of Your Debts

The first thing you should do when preparing for divorce is to make a list of your assets and debts. Your assets should include things like any real estate that you own, your vehicles, money in savings and checking accounts, investment accounts, retirement savings, furniture and household items, collectibles and any other valuables you own. Your debts can be things like a mortgage, an auto loan, credit card bills or any personal loans.

2. Gather All of Your Financial Documents

It is also important that you have all of your financial documents pertaining to your assets and debts on hand, especially when you are discussing property division with an attorney. You should make sure you either have the originals or copies for documents such as:

• Recent checking and savings account statements;
• Retirement account statements;
• Pension and social security statements;
• Investment account statements;
• Recent pay stubs;
• Tax returns from the past three years;
• Credit card statements; and
• Documentation from any mortgages, auto loans or personal loans.

3. Create a Budget For Yourself

This one can be crucial to your financial success after your divorce is said and done. Many times, your pre-divorce and post-divorce financial situations are very different. You may have been accustomed to a particular lifestyle during your marriage, but that lifestyle may not be possible after your divorce. Prepare for this by creating a list of all of your expenses and comparing it to your income. You may need to cut down on certain expenses in order to maintain a comfortable lifestyle. A budget will also be needed if you elect to seek spousal support.

4. Hire a Hinsdale, IL Divorce Attorney to Help You Manage Your Finances

Divorce can be messy and stressful, especially when it comes to your finances. You do not have to fret - a knowledgeable DuPage County community property division lawyer can help you manage everything from property distribution to spousal maintenance.

At the Law Office of Martoccio & Martoccio, we have more than 35 years of experience helping couples successfully complete their divorces. To schedule a free consultation, call our office at 630-920-8855 today.

Sources:

https://www.thebalance.com/how-women-can-prepare-financially-for-divorce-4158899

https://www.nerdwallet.com/blog/finance/7-ways-to-prepare-your-finances-for-divorce/