Written By Own Your Destiny Team
Divorces are messy, complicated affairs. Money is one of the many factors that have a big part in divorce proceedings. The process can leave you financially unstable if you are not careful. It is important to know how to come out of your divorce having at least mostly retained your financial position.
Seek Legal Help
Divorce laws are extensive and vary greatly from state to state. Seek legal help, so you receive all the information you need to make wise decisions. It is also a good idea to bring in a financial advisor to help you through the process, so you can make sure you are taking care of your finances.
Gather Records, Take Inventory
Collect all your financial records. Try to find documents and banking information that covers the past five years. It is also smart to make copies and keep them with you or stash them somewhere safe. You will need proof of all your financial information at some point in the process. Get a copy of your credit report. You need to have a complete picture of what your financial situation is.
Another vital, basic step is to take inventory of all your assets – things that are owned separately including property you had before the marriage, inheritances in your name, and gifts given specifically to you. Detail everything that is legally your property. Many people recommend taking pictures of your valuable items, as in messy divorces, sometimes things go missing during the proceedings.
Get a Bank Account
Refrain from making any large, lavish purchases during the divorce. You can never be sure how things will end up, so it is important to save as much money as you can before and during the proceedings. You should also open an individual bank account and apply for your own credit card if you don’t already have separate credit in your name. As soon as you realize you are getting a divorce, get your own bank account. Getting your own credit card can help establish your own credit rating before the divorce can affect it.
Consider Your Priorities
The reality of a divorce is that you will most likely lose something to your spouse that you hoped to keep. Have an idea of the items that you want to come out with the most. This prioritization can help you later if you are negotiating to see what remains under your ownership. You can choose which things to fight especially hard for, and which to let go.
Once the divorce is final, reevaluate your financial situation and the assets you have. Make a revised budget with this information to help you maintain financial stability without your spouse.
It is common for people to make rash decisions right after a divorce. They may sell their house and move away immediately. It is advisable to wait until the emotional and financial impact of the divorce has settled before making any grand decisions. Quick choices can often lead to regret and can impact your financial future.