Finances are a major issue in marriages. These also play a major role in divorce in matters such as property division and child and spousal support. Before ending your marriage, it is essential to develop a financial plan.
Begin by collecting recent bank, brokerage account, Social Security, and credit card statements. Other important information includes documents for loans or debts, mortgages, and pensions. Reviewing last year’s tax return can help show where these accounts or assets are located.
Keeping a secure digital copy of these records is recommended. It is also important to have access to all joint account information.
Keeping good and organized financial records is always important but plays an even larger role in a divorce. Understand your cash flow and track where money is being spent.
Obtain a copy of your credit report to learn about your financial situation and any joint debt. These reports also contain your credit score and can help you plan for any financial challenges that may arise after you are no longer married. Placing a freeze on your credit file can help prevent new lines of credit being opened in your name without your knowledge.
Before beginning negotiations and proceedings, understand your current financial situation and think about what will be important for your financial needs when you are no longer sharing income, assets, and debt. Setting priorities can help prevent wasted time and arguments over matters that are not priorities. Keeping your current home or covering certain expenses for the children, for example, may be important goals.
Attorneys can help set your options and priorities. They can assist with you seeking a divorce decree that is fair and reasonable and protects your interests.