When divorce becomes inevitable, it's important to turn some of your attention to your current financial situation. By doing this early in the process, you're can help avoid trouble during and after your divorce.
Here are some of the best ways to prepare your finances for divorce:
- Review your income and expenses: How much income can you expect to earn each month after your divorce? What will your expenses be? With these numbers in mind, it's much easier to appropriately prepare for the future.
- Create a budget: Once you understand your income and expenses, create a budget to help you stay on track. This should include all the expenses you'll be responsible for after divorce.
- Gather documentation: You'll need to provide various types of financial documentation throughout the divorce process. This can include bank, retirement account, credit card and investment account statements as well as pay stubs, tax returns and a list of debts and assets you brought into the marriage.
- Don't make a big purchase: Now's not the best time to buy something like a vehicle or home or to take a European vacation. There's plenty of time to do this after your divorce is final. Jumping the gun will only complicate matters.
By taking these steps, you'll find that you're more financially prepared for the divorce process and everything that comes your way in the future. When you combine this preparation with knowledge of your legal rights, you can move through your divorce with confidence. This will put you on the right path as you move forward as a newly single person.