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Divorce and Finances – 6 Tips For Financial Preparation
Divorce is a daunting prospect for many people. There are so many factors to consider. Living arrangements, intimacy, time with children, lifestyle changes, and relationships with mutual family and friends are all significantly affected. Finances are generally high on the lists of concerns. For the financially disadvantaged spouse – the one without a job or a significantly lesser income, it can be particularly scary facing the prospect of going it alone in the future. There are some preparatory steps that should be taken as you face an impending divorce. Here are 6 tips that can help you as you go through the process:
1. Open your own bank account. If you have joint funds, your partner is typically not supposed to prevent you from accessing marital funds during the course of a divorce for living expenses, but divorces get ugly and it is good to have money you can count on. You will need your own account moving forward anyway. If you don’t want to tip off your spouse to your planning, you can use your debit card for purchases and ask for cash back to stash in the account.
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2. Get a credit card in your name only. This is usually best done when your spouse’s and your credit is still combined, so that you get a higher limit and can report a higher combined household income. You may need to try more than one company if you are declined by one.
3. Make copies of every financial document possible. This can include W-2’s, tax returns, paycheck stubs, employee reimbursement accounts, mileage plan statements, loan information, bank statements, credit card statements, insurance information/policies, property appraisals, and the like. An attorney can provide you with the complete list of what they will need to help you properly divide assets.
4. Retain an attorney. Whenever there is property, significant assets, and custody issues involved, an attorney is an important professional to engage. Be sure to choose someone you feel comfortable with, who you feel has your best interests at heart. Also, a good attorney will encourage you to cooperate with your spouse as much as possible to keep costs down, recognizing that there are certain individuals who may be narcissistic or sociopathic, for example, and require a different approach.
5. Consult with a financial specialist who works in the area of divorce and projections on future outcomes of settlements. This can be extremely helpful as you work out a fair settlement. Keeping that expensive house may not be the best long term plan for you financially. Find out your options.
6. Create your living expenses budget. List everything you need, including rent, mortgage, HOA dues, property taxes, utilities, food, gas, insurance policies, car maintenance, school tuition, gym memberships, and any other regular, fixed expenses for you and your children. This will help both you and your attorney work with a realistic picture of what you need to live on your own.
Are you interested in addressing the challenge of divorce from a holistic standpoint, assessing the physical, emotional, practical, and relationship components?
For a free copy of my ebook, “Natural Methods To Fight Depression”, click here: http://www.stoptoxicrelationships.com/gifts-naturalmethodstofightdepression.html
Shannon Cook is a personal coach and resource guide who has written a number of informative articles and ebooks on the topic of toxic relationships and holistic personal growth, including physical, emotional and relationship health.
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