If you are considering a divorce, it never hurts to plan ahead. Read below for the 10 essential steps you won’t want to miss in preparing for divorce.
- Document everything you can find about money coming in or out from your spouse’s side. If you are in the dark about your spouse’s sources of income or the amounts, start nailing that information down. Pay attention to anything your spouse tells you about income or debt, and document that information with screen shots if possible. Check your credit card statements. Find out about employer benefits that your spouse may have, such as 401K or HSA accounts. Think outside the box to assets your spouse may hold that may not be as obvious, such as a large number of frequent flyer miles or a side business with his or her family that brings in a certain income.
- Get organized about money coming in or out from you own side. You likely have a general idea about your own income and debts, but you will want to save that information in an organized manner. Do you know where your tax information is? Refresh your records on your savings accounts, investment accounts, etc.
- Prepare your information in a place that will be easy to access after the divorce. After you have documented information about your collective finances, you need to save it in a place that will be easily accessible, such as your workplace or in the possession of a family member. Even where both parties are civil, keeping this information in a neutral place will avoid the potential for uncomfortable situations.
- Get property valued before the divorce. Getting a valuation of property may be valuable down the road, but your ability to do or the value in this information highly depends on the types of assets involved and their value. Some ideas to consider include: Taking the ring into a local jewelry store for assessment. Asking a car dealership the trade in value of your vehicles. Obtaining an appraisal of the home.
- Update your job resume before filing. If your spouse provides the financial support for your family, you may want to consider getting additional job training or education before filing. You may not end up receiving as much support from your ex-spouse as you need, so being able to step into the job market will empower you.
- Look at the date you are planning to file. The timing of your divorce can be important in some cases. Is your spouse expecting a large bonus or promotion soon? Do you have a large financial obligation pending, such as a house under contract as buyer or seller? Is one of your children approaching their 18th birthday? Consider everything before deciding when to pull the plug.
- Plan ahead for health insurance. If your insurance is through your spouse’s employer, you may want to see what other health insurance options will be available to you. You may be able to find options that are less expensive or you may be able to find employment where you can get health insurance benefits on your own.
- Consider what you value most. It’s a good idea to think ahead and decide what you value most and what you want to fight for, so that you can advise your attorney on what success looks like for you in the divorce. Do you want to stay in the family home? Do you care about the timeshare? Think ahead logically. One mistake often made in divorce is that the parties get caught up in the anger and spite and spend a lot of money on an issue that they don’t care about that much. Before the fireworks start, think about what you must have and what you can give up.
- Don’t assume that something is your because it is in your name. You may think that because an asset is in your name that it can’t be divided up in the divorce, but that often is not the case. When you are looking at your financial landscape, consider that assets and liabilities are likely to be taken into account regardless of the superficial designation of ownership.
- Seek professional advice. Even if you haven’t decided for sure whether you want to leave the marriage, you can seek advice from an attorney on how to plan ahead financially in the event that divorce is the right decision for you.
