Divorce is never a good time for anyone. For the couple who’s coming apart, finances may be the last thing in the world they wish to discuss. This is not an excuse to avoid the conversation. The end of a marriage can be the beginning of new money concerns. In the interest of smooth transitions from wedded bliss to singlehood, we are pleased to present a bit of advice about post-marital finances.
Financial records and assets inventory
As soon as you know that you and your spouse will divorce, gather all your pertinent financial records. A good number to aim for is the past five years. Collect pay stubs, bank statements, benefits into and tax returns. Gather property information, wills, trust documents, credit card bills and mortgage papers. Make copies of everything and store all copies in a safety deposit box to which your spouse has no access. Evidence of financial dealings during the course of a marriage may make it easier to settle situations after the marriage has run its course.
Inventory your personal assets and take time-stamped photos of everything. This includes items that you owned prior to the marriage as well as jewelry, collectibles, antiques and other valuables amassed during the marriage. While photographic evidence may seem a bit extreme now, one should be aware that many a vindictive spouse has made valuable objects ‘disappear,’ notes Nerd Wallet.
Bank accounts and individual credit
When divorce is inevitable, go to a bank not used by your spouse and open individual checking and savings accounts in your own name. Apply for a credit card that can only be used by you. Make small purchases with the card and make timely, in full payments in order to build the credit history you may need after your divorce is finalized.
Adjust your expenses, skip extravagances and cut your budget as much as possible prior to divorce proceedings. Eliminate unnecessary expenses in anticipation of your new single life. Speak with a certified divorce financial analyst, or CDFA as soon as you know a divorce is on the way, advises Learnvest magazine.
Pre-divorce checklist
If you are deeply in debt, you may wish to consult with a professional about with settling your debts before you dissolve your marital union. Starting fresh financially and emotionally may be the best way to deal with the heartache and confusion of divorce.
Change your will, your living will and your advance medical directives. If your spouse is currently the beneficiary on your insurance policy, change it now. The state in which you reside may not allow you to completely disinherit your spouse before the divorce is final, so you should consult with an attorney about that.
Becoming unmarried after a long or short union is rarely easy or comfortable. The best thing you can do is remain calm, discuss things with lawyers present and make sure you establish your own financial identity before your the dissolution of your marriage is final.
About Jammie Morey
Speak Your Mind