When many couples divorce, one of the things that is most difficult to become accustomed to is the loss of one income into the home. This can make it financially difficult — along with being hard on your emotions and mental state.
Here are some tips to help you understand how to remain on solid ground financially during and after your divorce.
1. Don’t take everyone’s advice: Even friends who have never experienced a divorce will have well-meaning advice. Before you move money around, change banks or make other financial transaction, make sure that you have consulted with an attorney who is licensed in your state.
2. Anticipate future expenses while tracking past ones: You should build a budget to help you keep track of your debts and assets and how they will change once the divorce is final.
3. Gather all necessary documentation: You don’t want your soon-to-be ex-spouse hiding assets or trying to empty all of the accounts. Gather items like retirement account savings, credit card statements, pay stubs, tax returns and more.
4. Avoid making big financial decisions: Changes to estate planning documents, retirement accounts and other similar financial matters will be taken care of during the divorce proceeding.
If you attempt to hide money from the court, you could find yourself in trouble with the judge. An attorney can provide information on how to keep your finances in check as your life as a single person begins. Your attorney can become more helpful than ever before and can recommend a financial advisor to help you pull everything together.
Source: USA Today, “7 ways to ready your finances for divorce,” Elizabeth Renter, May 31, 2017