Divorce can cause significant issues for each person’s finances. Most married couples have joint finances, so having to split everything up taking on the larger bills that come with living a single life can be challenging.
If you know that a divorce is coming, there are a few things that you can do to try to prepare financially. One thing that you don’t want to do is try to hide money or assets in an attempt to conceal them for the purpose of property division. Instead, take these three actionable preparations before the divorce.
Gather financial documentation
Gather all the financial documentation you can find. This should include bank, savings and investment statements. You may also need the information for car notes, personal loans and mortgages. The more documentation you have, the better you can prepare for property division.
Create a budget
Take the time to write out a budget. You may not know all the exact expenses that you’ll have, but you can make an informed estimate. Be sure you include as many expenses as you can. It may help for you to track your personal spending so you can include those in your budget.
Avoid making major financial decisions
If your marriage is in trouble, don’t make major financial decisions. This isn’t a good time to buy a home or make significant investments because you’ll have to deal with those during property division.
During divorce, you’ll have to divide all marital assets and debts. Going into this process with an understanding of the marital finances and what your finances will look like after the split can help you to make more responsible decisions during the property division process. Working with someone who can assist you with this may be beneficial because they can evaluate options with you.
