Divorce marks a major change in your life, and you likely want to move forward from this process as easily as possible. One of the ways to accomplish this is to properly prepare for the financial side of your divorce.
According to the Centers for Disease Control and Prevention, in 2020, 630,505 divorces and annulments occurred in the U.S., and many of these couples had to figure out new ways to manage their finances. The following strategies can help you prepare yourself and your finances for the divorce process.
Track your expenses
When your divorce becomes inevitable, start tracking your regular expenses and income. This can help the court determine how to divide your debts and assets, whether to award certain support obligations and help you know what your budget after your divorce will look like.
Gather as much financial documentation as possible prior to the start of the divorce process. Start by collecting your savings and checking account statements from the past year, your retirement account statements, your investment account statements, credit card statements, recent pay stubs and a list of debts and assets.
Wait on major financial decisions
The outcome of your divorce proceedings will likely impact your overall financial situation. For this reason, wait to make any major financial changes, like changing the beneficiaries on your life insurance and other policies.
Taking these steps prior to your divorce can help you feel more confident about what your financial situation will look like after you dissolve your marriage. Save and spend conservatively as you go through this process and seek professional financial help when needed.