Tips for Preparing Financially for Divorce

It’s no secret that divorce can create financial problems. You’ll need to pay court fees and the fees of your family law attorney near Owings Mills—and those are only the short-term financial consequences. On a long-term basis, you’ll most likely need to rearrange your budget to account for a single income. Depending on child custody, you may need to pay child support. Under family law , you may also have to pay alimony. Additionally, you may need to make alternative living arrangements. To place yourself in a position to move forward with your life as quickly as possible, it’s best to begin preparing financially for divorce as soon as you’ve made the decision to leave your spouse.

Make Copies of Important Documents Preparing Financially for Divorce
It’s not uncommon for one spouse to be less than completely aware of the household finances. However, your family attorney will need to review important documents such as your tax returns. Compile documents pertaining to investments, expenses, and debts, and make copies to bring to your appointment with the divorce lawyer.

Make a List of Assets and Liabilities
While you’re sorting through your financial documents, begin making a list of all of your liabilities, or debts. Make a note of whether the debt is in your name, your spouse’s name, or held jointly. Similarly, make a list of all liquid assets, including bank accounts and investments, and non-liquid assets, such as real estate and vehicles.

Establish Your Own Accounts
If you don’t already have your own bank accounts, it’s a good idea to open checking and savings accounts that are only in your name. However, avoid closing or removing your name from any joint accounts until you speak with your family attorney about this matter. Many people who are preparing for divorce also begin saving cash for legal fees and living expenses during the divorce proceedings.

Speak with a Financial Advisor
Make an appointment with your financial advisor and inform him or her that you’re planning a divorce. He or she can help you understand any issues that may apply to your situation, such as changes in your taxes. Consulting a financial advisor is particularly important if the other spouse handled all or most of the household finances. The financial advisor can walk you through the basics of managing your accounts and creating a single-income budget.