What Should you be Thinking About?
When you make the decision to get divorced, you are taking the income you used to make one household work and spreading it across two. Not only do you have to worry about making sure you understand your household’s current financial position, you also have to be prepared for budgeting during your divorce and how you are going to live life after your divorce.
Gather Important Documents Now!
The most critical document you’ll prepare during your divorce is the divorce decree. This will be the legal foundation for your settlement and layout what you are entitled to. Before you start the divorce process it is more critical than ever to make sure you have an in-depth picture of your financial situation. Making sure you understand what assets, liabilities and financial accounts you have created with your spouse will help you, and your attorney, get an accurate base to work from. Remember, your advisers in this process can only be as good as the information you supply them with.
What Financial Documents are Important?
Most people will begin with their bank accounts and big assets (house, car, boat, etc.) but overlook some essential pieces of their financial picture. You need to not only be concerned with the assets but also your liabilities and retirement accounts. Remember, you aren’t just making sure you get what you are entitled to, a divorce financial planner is going to make sure you think about the big picture and how you manage your finances during each phase of the divorce. Make sure that you can clearly define every liability (car payments, home equity lines, credit cards, etc.) and also take the time to learn about the retirement plans (or pensions) of you and your spouse.
All of this may seem daunting before you even begin the divorce process, but if you allow a financial planner to guide you through your divorce, you may find it a little bit easier.