If you are facing divorce, you are probably concerned about the property division phase of the proceedings.
Preparing your finances in advance. Becoming well organized will make the process go more smoothly.
Pull your financial records together
Becoming organized about your finances takes time, but complete records are essential when facing divorce. The basics include:
- Bank statements
- Retirement account statements
- Loan documents
- Credit card statements
- Investment account statements
- Income tax returns
- Recent pay stubs
Make lists of all your assets and debts and give everything to your attorney, keeping copies for yourself.
Track your expenses
Your attorney will also need a list showing your household income and expenses. Include anything you spend money for such as food, clothing, transportation, utilities, childcare and entertainment. You will also find this information helpful after the divorce when you need to establish a new budget.
Delay making major financial decisions
Refrain from making major financial changes ahead of your divorce. Remember that changes to beneficiaries, alterations to your will and similar issues will likely occur during the divorce itself.
Spend conservatively
It may be tempting to go on a spending spree as you approach the divorce, but keep in mind that a judge frowns on this type of behavior. You can continue to use your accounts but spend conservatively.
Seek professional help
The prospect of leading a life separate from your spouse will likely produce a range of emotions. Do not hesitate to ask for legal guidance when you have concerns or questions about property division and your financial security. Being well prepared will help you streamline the process and face your post-divorce future with confidence.
