5 Things to Know When Preparing Your Finances for Divorce Proceedings

Going through a divorce is no walk in the park. Not only is there an emotional struggle when it comes to divorce, but there’s also a strain on one’s finances. Even if one’s financial situation ends up good or even great following the divorce, there’s still often a mess when it comes to preparing, proving, and claiming financial assets while the divorce is still in process.

Here are some things you’ll want to know when it comes to your finances when getting a divorce.

1. You’ll Need to Gather Your Financial Records

First and foremost, gathering your financial records is absolutely critical when getting a divorce. Documentation you’ll want to gather includes checking & savings account statements, retirement account statements, your most recent pay stubs, income tax returns, and credit card statements.

Any and all financial records are important to provide during a divorce. The goal is to provide these to prove your current income, spending habits, financial stability, and asset ownership.

2. Making Big Financial Decisions Could Be Detrimental

When you’re making any sort of big move, it’s never a good idea to make major financial decisions. For instance, it isn’t very wise to change to your life insurance beneficiaries or making a major purchase of a luxury item or an item that’s way out of your budget. You’re going to want to be in a good, stable financial situation, not knowing exactly how divorce may change that.

3. Keeping Track of All Your Finances Going Forward is Critical

Keeping track of your finances going forward is a great idea. Saving receipts, collecting bank statements as you go, keeping bills, and so on- these can all help you prove how much you make and how much you spend when going through a divorce.

Besides the latter, keeping track of your finances can help get you to understand more about your spending & saving habits. This way, you can better prepare for better finances as a single man or woman, potentially with a single source of income.

4. Saving is Key

Divorce and separation can bring surprises. So, your best bet is to be as prepared as humanly possible to ensure you don’t end up in a bad financial state post-divorce. Part of that starts with saving money.

What are some tips on saving money in the middle of a divorce? Eat out less, cancel unnecessary subscriptions, and shop at thrift stores or off-price department stores.

5. You May Need to Reach Out to an Attorney for Help

Divorce can get messy very quickly, especially when there are many assets involved. Don’t be so quick to give up on trying to get the results you want. With a skilled divorce attorney, you can get all the financial aspects of your divorce figured out smoothly and get all your questions thoroughly answered.

Conclusion

Dealing with the financial aspects of divorce can be a big stressor for many. However, it doesn’t have to be all bad. When you’re well prepared, you can rest assured that things will go much smoother, and you have a stronger shot at getting the end results you deserve.