You need to prepare for divorce in all aspects of your life, including financially. Your finances are likely to change when you go through a divorce, whether you move out of or remain in the family home. Thus, it’s vital to be ready.
Here are two tips that can help you:
Gather your documents
Waiting until property division time comes to gather your financial documents can be overwhelming. Consider doing so after you and your spouse have the divorce conversation. The documents to gather include:
- Tax returns
- Paycheck stubs
- Bank statements
- Loan information
- Investment account statements
- Retirement account information
- Statements for government benefits and so on.
Not only can gathering your financial documents make your work more manageable, but it can also help you understand your financial situation. How much money do you have? How much debt do you owe? Which assets are likely to go through the property division process? Accordingly, you can determine the best ways to prepare financially for divorce.
Track your expenses
Tracking your current expenses can help you create a budget that you can use during and after your divorce. You need to know how much you spend on household bills, food, transportation, clothing and entertainment. If you and your spouse have already agreed you will remain in the family home, know how much it costs to maintain it.
You can use your previous budgets or receipts as a guide. However, note that you will no longer split bills with your spouse (if you shared expenses) and may have new expenses, especially if your divorce involves kids.
Finances play a crucial role in divorce. How you prepare financially for divorce is important. Obtain more information on how to transition into your new life without financial strain.
