Whether you have already filed for Divorce, or are just beginning to think about starting the Divorce process, it is important to be prepared and to educate yourself about your financial situation. The below five steps are a good way to start financially preparing for your Divorce.
- Know your Assets/Liabilities
It is important to know what assets and liabilities you/your spouse have in order have a good idea of what your estate looks like. Once the divorce process begins, and even when you are consulting with attorneys, it will be important to know everything that needs to be divided between you and your spouse.
- Know your Income/Expenses
You should also have a good grasp of your income and monthly expenses. This will help your attorney determine whether spousal maintenance is an issue in your case and will also help him/her understand your specific situation much better. You should also have an idea of what your spouse’s income and monthly expenses are.
- Make Copies of Financial Documents
Once you have established an inventory of your assets and liabilities, you should gather recent statements for all financial accounts and make copies that you can give to your attorney. This will help streamline the process once you do retain an attorney because you will be prepared when he/she requests this documentation. You should also make copies of your most recent five (5) paystubs, your most recent tax returns and w-2s.
- Check your Credit Report
After you have created a clear picture of your financial situation, you should obtain a copy of your credit report and compare it with your list of assets/liabilities. It is especially important to check the outstanding debts listed on your credit report to ensure that there is nothing amiss. Throughout your divorce, you should monitor your credit report in order to remain aware of your financial situation.
- Plan for the Future
It is important to think about what your life will look like after divorce. What will your living situation be? Will you need to create or adjust your budget? Will you need a financial planner? These are important things to keep in mind during the divorce process so that you are financially prepared once the divorce is finalized.
If you have any questions about the divorce process and how you can prepare financially, please call me today at 651-647-0087 or reach out via our online contact form to set up your free consultation.