It’s inevitable that both parties will be scarred after a divorce. However, here’s six steps you can take action in now which can ensure you are financially protected.
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Gather Your Financial Records
Gather ALL your financial records which will tend to be five years’ worth of documents. The documents should include:
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Tax returns
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Payroll
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Stubs
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Benefits information
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Investment accounts
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Property information
Having evidence and organization when it comes to these documents will royally help you during the divorce and protect you in case something goes missing
2. Inventory your assets
As your gathering your documents it is a good idea to start an inventory of all your assets. Separate property is anything you owned before the marriage: gifts solely given to you, or inheritances. Anything acquired during the marriage is free game and considered marital property.
Take digital, date-stamped photos of your valuables. It is likely for things to go missing once the process starts.
3. Monitor your credit report
In order to emerge from the divorce as fiscally unscathed as possible, you need to be fully aware of your current financial situation. Be sure to obtain your own copy of your credit report and pay close attention to any outstanding debts.
4. Open individual accounts
Try using a bank other than the one you and your spouse are currently using this could be the safest option. Open checking accounts, savings account, and credit card in your name only. This way you can build and strengthen your personal credit history.
5. Know (and cut) your expenses
Divorces are costly and you’ll need to redraw your budget. It is important to determine how you will accommodate the expenses associated with the divorce and your new, single life.
6. Speak with a certified divorce financial analyst
A CDFA is trained to support you through your difficult time and ensures you are as financially healthy as possible once the divorce is said and done.
If the divorce process isn’t handled properly and effectively it can leave lingering financial implications for your future. An attorney is indeed an expert in a state’s laws but not a financial one.
Protect yourself
Divorce is a painful process, but by getting your finances in order, you can help protect yourself from even greater pain.
Read the full article by Shawn Leamon at nerdwallet.com and learn more about protecting your finances during, before, and after a divorce. If you’re looking for legal assistance to help you through the divorce process contact David Veliz at Veliz Katz Law.
