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5 steps to help you prepare your finances before your divorce

On Behalf of | Sep 29, 2022 | Divorce |

When you are going through a divorce, you should have a thorough understanding of your financial situation.

There are steps you can take that help you protect your assets as you pursue a fair outcome for your divorce.

1. Review your expenses

You should examine your monthly spending habits and consider how they might change in the future. This is especially important if you or the person you are divorcing is likely to receive child support or alimony.

2. Avoid major spending

During your divorce, you should be conservative in your spending. Avoid making major purchases when possible, as this can complicate the divorce process. Additionally, it is important to be open about your expenses with your spouse and your lawyer.

3. Account for assets

Take inventory of your assets, including shared and personal property. It is unlawful for you or your spouse to conceal assets in a divorce.

4. Taxes and fees

Some assets, such as retirement funds, can be more complex to split in a divorce because of fees and taxation. Financial professionals can help develop strategies to divide assets in ways that minimize costs. This can protect the financial interests of both parties in a divorce.

5. Estate planning

Review your estate plans, including your will, any financial trusts, your powers of attorney and your life insurance. After your divorce, you can change your beneficiaries to reflect your new situation.

Preparing your finances before you divorce can help you split your property in a fair manner while avoiding unnecessary costs and complications.