5 Tips to Help You Prepare Your Finances for Your Divorce

 Posted on July 17,2019 in Divorce

Getting a divorce can be one of the hardest things you will ever do in your entire life. Most people know or can imagine how emotionally stressful a divorce can be, but they may not think about how other areas of their life will be affected. For many people, a divorce can also put a great deal of stress on their financial well-being. Fortunately, there are a few things you can do to prepare your finances so they do not take as big of a hit during your divorce. Here are a few ways you can help keep a sound financial footing as you go about the process of ending your marriage:

2. Gather All of Your Financial Documentation

Before you even begin to do anything, you need to make sure you have documentation for all of your finances. This can be the most important step, because having documentation in one place can help you get a sense of your current financial picture, and it can also help you plan for success once you are divorced. You should make sure you have copies of documents such as:

• Bank account statements

• Investment account statements

• Retirement account statements

• Information on your mortgage, auto loans, and personal loans

• Credit card statements

• Tax returns from the past couple of years

• A list of assets you and your spouse have

2. Split Your Accounts

Next, you should begin to separate your financial accounts from your spouse. The sooner you can begin to establish your own personal financial situation, the better. If you and your spouse have joint bank accounts, you should either withdraw half of the balance and put it into a new account under your name only, or open yourself a new account with just your name and begin depositing your income there. 

3. Track Your Income and Expenses

Creating a budget for yourself can be key to managing your finances after you are divorced. Before your divorce is finalized, you should begin tracking your single income and any recurring expenses you might have. Try to anticipate how much you will need to live on your own comfortably once you no longer have dual incomes. This can be a basis for decisions about asset division and/or spousal maintenance during your divorce.

4. Protect Your Credit

Your credit should be an important consideration while you are going through your divorce. If you always applied for loans under your spouse’s name, you may not have any credit yourself, or what credit you do have may not be good. Begin by opening one credit card under your name only and making small purchases on it. Pay off the balance every month to ensure you do not accrue interest, and your credit score should improve.

5. Hire a Frankfort, IL Divorce Lawyer to Help You Maintain Healthy Finances

It is no secret that a divorce can cost quite a bit of money. With lawyer fees, court costs, filing fees, and other unforeseen costs, your finances can take a hit. With help from a knowledgeable Will County divorce attorney, you can be sure that your financial interests are being taken care of and that you will not have to worry after your divorce is finalized. At Wakenight & Associates, P.C., we will help you protect your rights throughout the divorce process and work to reach a positive outcome that will put you in a position for financial success. Call our office today at 815-727-6144 to schedule a free consultation.

Sources:

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

https://www.forbes.com/sites/jefflanders/2018/02/12/a-checklist-to-help-you-manage-post-divorce-finances/#5c26b696bb31