How to Stay Financially Secure During a Divorce

 Posted on November 22, 2017 in Divorce

A divorce is widely considered the second most stressful life event a person can experience. It is second only to the death of a spouse. For those contemplating ending their marriage, there are many things to understand and plan for in advance. One of the many concerns that people considering divorce have is how it will affect them financially. There is no avoiding the fact that a divorce will change your financial situation but that does not mean that a divorce has to be a financial disaster. With some planning, help from professionals, and a little creativity, you can keep your divorce cost manageable.

Be Aware of Your Finances

Experts encourage people who are planning to divorce to immediately begin tracking their household income and expenses. In many marriages, only one of the spouses handles the money management. When two people divorce, they will both become responsible for sticking to a budget, paying taxes, and managing bills and surprise expenses. Taking stock of your current financial situation will not only help you prepare for being single but will also help your attorney advise you regarding splitting assets and debts and allow you to account for spousal or child support.

As the likelihood of divorce increases, you should know where to find or how to access items such as:

• Income tax returns;
• Credit card statements;
• Recent pay stubs;
• Checking and savings account statements;
• Investment/retirement account statements;
• Ledgers for your mortgage, auto loan, or other loans;
• A list of assets and debts brought into the marriage; and
• A list of assets accumulated during the marriage.

Minimize Risks

Another tip to avoiding unnecessary financial headaches during a divorce is to make sure to get any agreements between yourself and your spouse in writing. You may be tempted to work out a verbal or informal agreement in hopes of avoiding legal costs. Unfortunately, these types of arrangements cannot be carried out or enforced by law without being incorporated into the formal divorce decree.

While the divorce process is beginning, continue to spend money as usual. There is no reason that either spouse should suddenly start making unusual purchases. If you are concerned that your spouse may do something unethical with joint expenses before the divorce is finalized, your attorney can help you explore options for protecting your assets.

Contact an Experienced Family Law Attorney Today

If you and your spouse are headed for a divorce, it is important to put a legal professional on your side as soon as possible. Contact an experienced Naperville divorce attorney to get the guidance you need. Call 630-352-2240 for a confidential consultation at Pesce Law Group, P.C. today.

Sources:

https://www.investopedia.com/advisor-network/articles/how-achieve-financial-goals-during-divorce/

https://www.nerdwallet.com/blog/finance/7-ways-to-prepare-your-finances-for-divorce/