How can I financially prepare for a divorce?
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How can I financially prepare for a divorce?

| Nov 9, 2020 | Divorce

Taking time to prepare before you file for a divorce can save you a lot of trouble later in the process. Specifically, you need to financially prepare yourself. 

By getting your finances and financial information in order, you will better be able to work through the different aspects of your divorce. Plus, you will be better able to prepare for life after the divorce. Financial issues are one of the biggest problems that result when couples divorce, so save yourself the hassle and prepare before you even file. 

Budget the costs

U.S. News and World Report suggests that you forecast how much your divorce will cost. Consider all your options, such as litigation, mediation or collaboration. See what makes the most sense financially. Knowing the costs ahead of time can also help you to convince your spouse that a certain option is the best way to handle your divorce. 

Know your finances

You also need to get a clear picture of your finances. Make sure you know about every account your spouse has. Gather account numbers and information. Try to get balances on all financial accounts. Make sure you have titles to property or other key documents for assets. If you are unsure of anything, work with a financial expert to figure things out and uncover any accounts your spouse may have that you did not previously know about. 

Establish your own credit

If all the credit you have is in your spouse’s name or in joint accounts, now is the time to establish credit in your own name. You will need it once the divorce is final. 

Avoid big spending

Now is not the time to spend a lot of money. You should conserve your finances. Also, if you spend without abandon, the court could take that as a sign that you are trying to get rid of assets to avoid splitting them. The best thing to do is develop a budget for yourself that will work post-divorce and start following it right now.