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Financial Considerations Before Divorce

Handling Finances

A second stage while planning to separate is the financial one, in which partners list and then divide their joint property and settle their debts before reaching a final agreement. The best thing to do is to work together to gather and record all your financial information. Such gathering with save time and money once you begin the process of divorce.

Tally the worth of your assets. Notice overall what is owned by you alone, what is jointly held by the two of you, and what is solely owned by your spouse. It is also a good idea to assess your credit card debt as well.

Immediate Economic Goals

The following steps would be helpful to complete as part of practical planning, before or during discussion of a separation:

  1. Pay off your bills and set up a payment plan for your debts.
  2. Open your own checking and savings accounts as well as establish good credit
  3. Place as much as you can into your savings account beginning today.
  4. If you have money in savings, place the funds into a money market account with better interest.
  5. Make sure your car is in good condition; if not, schedule repairs or look into buying another car.
  6. Increase your income at work or begin looking for another job. Remember, it will cost you more to live in two separate households.
  7. Learn everything that you can about your bank accounts, investments, insurance, taxes, and the value of your current home. Make copies of all documents and take them with you to your appointment with an attorney.
  8. If you need counseling, medical attention, dental work, or anything else, see professionals right away. Your mental, emotional, and physical health are very important. Do this while you still have two incomes.
  9. Begin investigating the housing market if you are the one leaving. Begin looking today.
  10. Safeguard heirlooms and liquid assets. Seek appraisals of artwork, antiques, and other collectibles. Make sure you revoke any powers of attorney your spouse may have.

Future Economic Goals

  1. Look at the list of your accumulated assets and write down the amount you estimate to be yours, that you can count on each month. Include your monthly salary and any other income coming only to you.
  2. Prepare a list of your monthly expenses and determine how much you would spend just on yourself.
  3. Make decisions about your current job, whether or not you want to remain there. If not, begin thinking about and research a future career. This change may necessitate a return to school.