Going through a divorce can be an emotionally and financially draining process. Whether you are the one initiating the divorce or not, it is important to be aware of how the process will affect your finances. To help make navigating the financial complexities of divorce easier, our family law firm has compiled some helpful financial tips for people getting divorced.
Gather financial documents
When you’re going through a divorce, it’s important to have a clear understanding of your financial situation.
Some documents to gather include:
- Bank statements for all accounts, including joint accounts
- Investment account statements
- Tax returns for the past few years
- Mortgage statements and other loan statements
- Credit card statements
- Retirement account statements
Establish a budget
When going through a divorce, it is important to establish a budget for yourself to help you manage your finances. This budget will help you determine how much money you have coming in and going out each month, and will help you stay on top of your expenses.
Once you have established your budget, make sure to stick to it as much as possible. This will help you avoid overspending and prevent any additional financial stress during this already difficult time.
Monitor joint accounts
During a divorce, it is crucial to monitor your joint accounts regularly. It’s essential to ensure that your soon-to-be ex-spouse is not depleting or overspending the account, leaving you in financial difficulty. Even if you’re on amicable terms, it’s still wise to keep track of your joint accounts.
If possible, you may want to consider closing joint accounts and opening individual ones.
Work with a financial professional
Divorce can be a complex and emotional time that can make managing finances difficult. Working with a financial professional can help ease the burden of this process. A financial professional can provide guidance on various financial aspects of a divorce, such as tax implications, property division, and retirement planning.
When working with a financial professional, it’s important to choose someone who has experience in divorce cases and understands the unique financial challenges that come with this process. Make sure to communicate your goals and concerns with your financial professional, so they can provide personalized guidance that meets your specific needs.
Keep communication lines open
Divorce is an emotional and stressful time, but it’s important to keep the lines of communication open between you and your soon-to-be ex-spouse. This can be difficult, especially if there are hard feelings and tension involved, but it’s crucial for financial reasons.
Not talking about money can lead to misunderstandings and assumptions that can affect both parties. You may have to have some difficult conversations about splitting up assets, alimony, child support, and debts, but it’s best to tackle these conversations head-on.
Consider having regular check-ins to discuss how you both are handling the financial aspect of the divorce and what changes need to be made along the way. The goal is to work together towards a financial agreement that’s fair and equitable to both parties.
If you are planning on filing for divorce, we recommend enlisting the help of a qualified family lawyer like is in San Leandro, CA, to ensure you are financially protected.
