It is certainly difficult to go through a divorce. However, if separation is guaranteed, it may be wiser to focus more on your finances rather than let your guard down and feel sad.
In short, it is best to focus on the things that you may be losing if you’re not paying attention rather than on the person that you lost, as divorce lawyers would say. Therefore, in the following lines, we’ll show you five ways to prepare your finances for everything divorce-related!
Round-Up Financial Records
Things can go missing during a divorce, even worse, your ex-partner can claim they own something that you actually own. How do you prevent such things?
You have to round up at least five years of financial records. Such records will not only help you safeguard your finances and assets but will also speed up the divorce proceedings.
Make sure to have copies of the records and keep the originals in a deposit box or safe outside of the house that you may have to split.
If you receive a lot of gifts, awards, prizes in money, and so on, now it’s time to inventory those, as well as any other assets that you may own.
Personal assets are often classified as separate property, and you are entitled to them. This includes inheritances, personal gifts, and assets that you owned prior to the marriage.
Moreover, you could also take date-stamped pictures of your assets, just in case they go missing or someone claims they are theirs.
Long before you talk with a lawyer about your divorce, you should do your best to open individual accounts for you. This is done to build a credit history or strengthen the current one. As such, credit cards, checking accounts, as well as savings accounts, are recommended.
It is also advised to open such accounts at another bank – not the one responsible for your joint or spouse’s accounts.
It would be best if you got your hands on a credit report, as you may have to discuss it with your lawyer. In order to avoid any surprises, you’ll have to take care of any outstanding debts or other situations before disclosing your records for the divorce proceedings.
Credit reports should be checked regularly during the divorce as well so that you don’t come across any surprises after the divorce is complete.
Divorces are quite costly. Although your ex-partner may think that they are entitled to a sum/percentage of what you both own, it’s better if you cut your expenses before they become a reason for debt.
Inspect your monthly expenses and cut those that could impact your finances in the long run. Basically – adjust to the single life and manage your expenses accordingly.
The Bottom Line
Depending on the status of your wealth, a divorce may be more or less dangerous. In any case, one of the spouses may always lose something they thought they couldn’t lose during a divorce, even if it’s the integrity of their finances.
As such, don’t rely only on your lawyer. Take matters into your own hands, and keep a close eye on your financial status while you experience the transition to single life!