While you should be prepared for the unexpected in divorce, you can do things to protect yourself financially as soon as you decide to file or your spouse notifies you that they will. Finances are critical, and being prepared for what’s to come can go a long way in helping you not only feel more stable but fare better in the long run.
Gather financial documents
The first thing you will need, and your attorney will most likely ask you for this right away, are your financial documents. Your legal team will want to know where you stand financially. If you have a financial advisor, request your financials from them. In addition, gather your:
- bank statements
- tax returns
- investment paperwork
- debt information
After you gather the paperwork, hand it to your attorney. Make sure you do not miss anything, as that could lengthen the process and create problems later.
Create a budget
Most people do not have unlimited resources and must live within financial limits. You will no longer be part of a marital union now, which means you will have to be financially responsible and know what you make, what you can spend, and how you plan to spend your money.
- Take stock of your income from all sources and expenses to understand your cash flow.
- Evaluate your assets and liabilities, and if anything needs to be appraised, get an appraisal.
Consult professionals
During this process, you will need the help of an attorney and potentially a financial advisor, depending on the number of assets you have and their worth. It is critical to remain informed about laws related to your divorce and any tax ramifications that may come from the divorce.
By taking these steps and, if necessary, additional ones (as your attorney advises), you can better navigate your financial picture and better understand how to plan for the future.