Divorce can be a stressful life event. No matter the circumstances of your divorce, you will be compelled to deal with lengthy paperwork and make difficult decisions. Alongside the emotional toll, divorce can also impact your finances in a huge way.
As soon as your divorce becomes apparent, you need to take appropriate steps to protect your financial future to the best of your ability. And with foresight and proper planning, you may be able to maintain a healthy financial footing at the end of your divorce.
Here are two important financial tips that you need to take into account before and during the divorce process.
Get your financial records together
As soon as divorce becomes inevitable, it is a good idea to start getting your ducks in a row – financially speaking. Some of the documents you need to get together include:
- Bank and loan statements (including credit card statements)
- Tax returns
- Social security statements
- Investment and retirement account statements
You may need to deposit some of these documents with the divorce court, so the sooner you begin gathering them, the better.
Take stock of the marital assets…and liabilities
A huge part of preparing for divorce involves compiling and disclosing your marital assets and liabilities to the court for property division purposes. It is important that you are as factual as possible while doing this. An omission or misinformation can hurt your property division case, and you do not want this to happen. While taking stock of your marital assets, do not forget about the debts too. And if you signed a prenuptial agreement, this would be the perfect time to check it out too.
Handled poorly, divorce can leave you in financial turmoil. Find out how you can protect your rights and interests while going through the divorce process.