Divorce is emotionally and financially draining and the more contention the more expensive it gets. One of the hardest parts of many divorces is the division of assets especially in families with large incomes and many physical assets. However, this can also be difficult in smaller, one-income homes where one person may suddenly find themselves without access to any income. Here are five tips that will make planning for financial success a more complete reality as the divorce pends.
Make Complete Lists of Financial Records
You will not know where to start financially until you have a complete picture of what your assets are. Gather and make copies of a variety of financial records, such as bank statements, retirement accounts, mortgages, tax returns and paychecks. You will also want to inventory costly assets around your home, such as jewelry and antiques. If your spouse has controlled all the money you may not even be aware of some of the assets so a good tip is to contact the IRS and get copies of your recent tax returns. Although technically assets don’t have to be listed income does. So if an account pays interest or dividends it should be listed.
Open an Individual Account
If you do not already have an account that is separate from your spouse’s, now is the time to open one. Choose a bank that is different from the one that you currently share with your spouse. If you still have access to your joint account transfer some money to your personal account. Also, open up a credit card in your name only to begin building your personal credit.
Get Help from a Divorce Lawyer
While divorce lawyers may initially seem expensive, they can greatly help you throughout your divorce. They will be able to give you advice about your finances and give you personalized tips. You can ask your divorce lawyer about changing financial accounts, buying a new house when getting a divorce, or any other financial questions that you have.
Monitor Credit
Changes in credit status are common as you and your spouse separate finances. As soon as possible, you will want to obtain a copy of your complete credit report, which can be received free one time per year from each of the major credit reporting agencies. Be sure to take note of any items on the report that do not look right or of any debts that you do not recognize.
Spend Wisely
Now is not the time to spend money on big ticket items. Instead, this is the time to cut expenses as much as possible and save money for possible future financial needs. This is also a great time to form a wise budget that focuses only on you and your new needs. At the same time, you should also be as honest as possible with your spouse about joint money that is being spent until the divorce is finalized.
While getting your finances ready for divorce may seem like one more unwanted task on your to-do list, this can make your divorce go so much smoother overall. Divorce is about more than just a breakup of a relationship. It is also a splitting of your finances and a legal endeavor overall.
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