Divorce can be one of the most emotionally challenging things you’ll ever do. For many couples — especially those who don’t have minor children – the financial aspect of divorce is the most important.
That includes not just determining how shared assets and debts will be divided. It’s crucial to secure a sound financial post-divorce future. If you and your ex are going your separate ways, it’s important to plan ahead and to remain proactive as you begin your single life.
Access your financial documents as soon as possible
Retaining a financial advisor (not one who’s been working for you and your spouse) in addition to your legal team can be valuable. However, that doesn’t mean you won’t have to do some important work yourself.
That should begin as soon as you start seriously considering divorce (or you learn that your spouse is). It’s typically easier to access shared financial documents while you’re still together.
That means gathering documents related to your shared accounts, property, taxes and loans or other debt as well as your individual assets and debt. Much of this can be accessed online. If you have access to information on your spouse’s 401(k) and other retirement accounts, it’s smart to get documentation on those as well, since they typically are divided in divorce
If your name is on accounts, credit cards, property titles and tax returns, your spouse shouldn’t make them inaccessible to you. However, if they change passwords or otherwise seem to be hiding or moving things, let your legal team know.
Keep an eye on account activity
It’s crucial to start keeping an eye on what’s going on with any shared accounts to make sure your spouse doesn’t start racking up debt on joint credit cards, withdrawing money from shared accounts doing other things that could harm your financial future. You can set up alerts on joint credit cards and other accounts so you will be notified of transactions over a specified amount.
It’s also smart to get a copy of your credit report at the beginning and then periodically throughout the divorce process. If your spouse is doing things they shouldn’t, make sure your legal team knows so they can take the appropriate steps.
Prepare post-separation and post-divorce budgets
Finally, you’ll want to create a budget for yourself for after you separate and then for after the divorce is final. This will help ensure that you can seek any financial support you need from your spouse during the separation and that you seek the assets and spousal and/or child support you need after the divorce is final.
This can all seem overwhelming. However, having the right professionals in your corner can make all the difference to your future.