If you have substantial assets and are facing divorce, you may feel overwhelmed just thinking about the property division phase of the proceedings.
The key to lowering anxiety while achieving your goals for a comfortable, post-divorce lifestyle is good preparation. If your finances are in order, the property division will go more smoothly.
Organizing financial records
As you approach property division, your divorce attorney will need your complete financial records. Gathering these documents is time-consuming, so begin pulling them together as soon as you know that divorce is inevitable. Basics include:
– Bank account statements
– Retirement account statements
– Credit card statements
– Retirement account statements
– Investment account statements
– Mortgage and auto loan information
Other assets will vary but might include income property, club memberships, valuable collections, jewelry and furnishings.
Tracking expenses
Track your household income and expenses since the court will use this information to determine how best to divide both assets and debts. Your credit card statements will help you track your spending habits. Having a good idea of your expenses will help you plan a budget for the next chapter of your life.
Avoiding big financial decisions
Until the divorce is final, avoid making big financial decisions such as changing the beneficiaries in your will or retirement accounts. It is best to wait since major financial changes will occur during the divorce process.
Looking ahead
Divorce is an emotional, unsettling experience for anyone, and couples with significant assets have a great deal at stake when facing property division. Approaching the process in an organized fashion paying particular attention to finances will remove much of the strain and enable you to face the future confidently.
