Having to go through a divorce is not a thing that married couples intended to happen for their marriage. However, there are instances wherein no amount of marriage counseling seems to be sufficient enough to preserve a marriage. In this case, if you are thinking of getting a divorce, then below are some tips to ensure that you and your finances are prepared.
One of the primary things that you need to do to prepare your finances if you are thinking of getting a divorce is to track your current expenses, and as much as possible, anticipating future ones. This will not only help you build up your budget after your separation, but it is also crucial for your lawyers, as well as the judge, who will decide how your assets and liabilities are split later on. This is also a substantial basis on whether spousal or child support needs to be granted.
As soon as you have a good overview of your current expenses, the next thing that you need to do is to gather documentation. The seasoned lawyers behind McFarling Law Group suggest that you collate your financial records because this provides a good overview of your marriage’s financial health. The process can prove to be tedious, which is why you need to start as early as possible. In this case, you can begin with your checking and savings account statements in the past year, as well as your investment account statements. Make sure to also secure a copy of ledgers for any loans that you have, such as mortgage or auto loans, as well as personal loans in the past year.
Because divorce can significantly change your life, this is not a good time for you to make major financial decisions, such as changing the beneficiaries of your life insurance. Alongside this, it is also not a good move to change your will or even make any updates to your retirement accounts because if you make any changes in these accounts, then the judge may lean towards awarding your spouse. Thus, you should wait until after the divorce is final before you make any major financial decisions.
Finally, regardless of whether your divorce settlement is amicable or adversarial, you should seek help as necessary. Remember that your lawyer will be able to assist you in sorting through the separation of your lives, including your finances later on. Thus, getting a lawyer to help you through the process should not be seen as an act of aggression towards your partner.
To wrap things up, getting a divorce is indeed unfortunate, but it can be the most viable means to ensure that you and your partner still respect each other even after having to live through a tumultuous marriage. Just keep in mind to prepare physically, mentally, emotionally, and financially if you intend to push through with the process. In terms of the latter, the tips above may prove to be beneficial. Rest assured that everything will work out for the best in the end.