You have concerns about the divorce process, with many of them tied to your current and future financial circumstances.
Even though your finances are sure to change, there are steps you can take to prepare accordingly and ensure stability during this difficult time.
Here are several things you can do to prepare your finances for divorce:
- Review your budget: As soon as possible, review your budget to better understand your personal earnings and monthly expenses. Your situation will change post-divorce, so you need to create a new budget.
- Gather the necessary financial documentation: This includes things such as bank account statements, retirement account statements, pay stubs and tax returns. If you think you’ll need it during your divorce, it’s best to gather it upfront.
- Create a checklist of debts and assets: A big part of divorce is deciding who gets what, and this holds true with both debts and assets. Do you want to stay in your family home? What will happen to your retirement accounts? How will you deal with joint credit card debt? A checklist can help you better manage all these situations.
- Don’t make big purchases: Now’s not the time to take on a big purchase, such as a home or motor vehicle. If you need to make this type of purchase, you can start planning for it. However, you don’t want to finalize a deal until your divorce is in the past.
When you take the right steps in preparing your finances for divorce, it’s easier to pivot as necessary all while feeling good about where things are headed.
