How to Financially Prepare for a Divorce

Posted on Saturday 12 May 2018

How to prepare financially for a divorce

Divorce is a difficult and tragic time in the life of any couple. However, there are times when things happen, irreconcilable differences occur, and the only best recall is divorce. When divorce is the best option, it is very important to follow through on it. Divorces are generally regarded as stressful and draining, although, these pains can be minimized to a certain extent.

The proper and thorough financial planning is both necessary and can save a lot of drama, misunderstandings, and confusion. Preparation can also come in handy in the event that one's spouse proves to be greedy, dishonest, or otherwise disingenuous.

Collect All Documentation Relating to Financial Affairs

Gathering all financial-related documents in very important when preparing for a divorce, according to Nerd Wallet. After all, financial preparation is incredibly challenging, if not impossible, without having full knowledge of one's financial state and monetary contributions which have occurred throughout the marriage.

Therefore, it is absolutely imperative to collect and review documentation such as statements for investments, checking, and savings accounts, income taxes, pay stubs, credit card statements, etc. Having the aforementioned records can prove to be quite useful, especially if uncertainties or untrue allegations about money arises. Collecting documentation is one of the very first steps regarding financial preparation for a divorce. Similar to getting ready for a retirement.

Save and Accumulate Funds

Divorce is an inherently expensive and costly endeavor. Therefore, saving and putting aside money is absolutely imperative. There are countless fees, costs, and unexpected occurrences which are almost guaranteed to pop up in the midst of a divorce. Make you have the funds as the last thing you need is a hit on your credit score.

This is why so many people save money and put aside funds so that they are not caught off guard by something unexpected. Protected furthermore states that consistently stashing aside money over time can significantly ease the burden of paying attorney fees. No matter what, saving funds is always a paramount aspect of financially preparing for a divorce. Nobody likes the idea of saving for a divorce, but nothing wrong with preparing for it. You can even add more to this fund by saving further. By simply purchasing groceries online. After all, at the end of the day, every little bit helps.

Try to Work with Your Soon-to-Be Ex-Spouse

Although this may seem ironic and counterintuitive in the midst of a divorce, working with one's soon-to-be-ex can make a phenomenal difference and save both parties unbelievable amounts of headaches and money. If possible, go have a meal together like adults.

An amicable or cordial divorce can mean the difference between proceedings which take a few weeks or several months. Unfortunately, working with the other party is not always an option. Some spouses can be incredibly difficult or vindictive, especially depending upon what happened in the marriage and how events played out. Nevertheless, working together is always worth a shot. After all, you don't want to be in a rough financial spot. Next thing you know, you are taking out tons of payday loans and getting deeper into debt.

A Final Word

Financial planning for any divorce is always the best course of action. However, there are many expenses and fees which are simply unavoidable. Divorce creates a difficult and often stressful environment, regardless of how prepared one or both parties may be.

Sometimes, the very best forms of preparation simply involve having an awareness of all financial aspects and putting money aside to be able to effectively cover any associated monetary costs. Consulting a financial adviser can also come in handy when planning for divorce.