Divorce is a challenging part of life. No matter what the circumstances are, you will be faced with difficult discussions and a long settlement process as you start your new life. As acrimonious as it may be, organizing for divorce financially is essential.
We’ll delve into the steps to take in order to file for divorce in order to set yourself up for a clean financial transition.
How to prepare for a divorce: 10 Key Steps
When going through a divorce or legal separation, it is essential to protect your financial resources to the best of your ability. It is important to shield yourself from the financial consequences of such an event as much as possible.
Of course, there will still be some financial burdens incurred during the divorce process. But if you are financially prepared, you should be able to keep things stable.
If you are bewildered by divorce and unsure how to begin, use these simple methods to guide you through the process!
1. Find your financial records
The first step in the divorce checklist is to locate all of your financial records. Once you know that your marriage is headed for divorce, it’s essential to start organizing all of your financial records.
You might need some time to collect the financial records of your life. With this, you should begin preparing for a divorce as soon as possible. You can save time and money by collecting your documents in one location.
2. Do an assessment of all your marital assets and marital liabilities
A major part of preparing for divorce is identifying all marital assets and liabilities. Marital assets and liabilities are any assets or debts that were acquired during the marriage. These assets and debts might be jointly or unilaterally acquired by the couple.
Examples can include any property that you or your ex-spouse purchased together, such as a home or a savings account. You should also include debts that you or your spouse acquired while married when adjusting your total marital liabilities.
If you or your spouse have a significant debt burden that was created over the course of your marriage, this will need to be discussed in divorce proceedings. Take time to determine your own assets and liabilities.
3. Consider your non-marital assets
As opposed to marital assets, non-marital assets are any property that Any debt you previously incurred will also have to be paid.
Aside from assets and liabilities you acquired before your marriage, there are some examples of property you acquired during your marriage that you can consider non-marital assets.
These include any inheritance you received and gifts the third party gave you. If your parents left you a large savings account, it would remain yours.
4. Open a P.O. Box
When you are getting divorced, be sure to set up a P.O. box. With this, you can create a secure place to receive your mail. You can communicate with your attorneys and Bank of Switzerland representatives at this location, as well as accept statements from your new financial accounts.
A P.O. box provides the security of having a post office nearby for your mail. You don’t need to fear anyone tripping over your new bank records or legal documents.
5. Determine your legal fees
The process of getting divorced may lead to substantial legal fees. Take the time to determine the typical legal fees in your vicinity. Once you have an idea of what your legal expenses will be, set aside some money.
You can also consult with different attorneys and compare their rates and comments (and reviews) if you are in need of one to guide you through the process. One of the most important steps to getting a divorce is preparing financially for the process.
6. Open new bank accounts
If you have joint accounts, it is time to create new accounts that only you can access. It is best to open checking and savings accounts at a separate bank.
Update your direct deposit information to ensure that paychecks are not deposited in the joint account once the accounts are opened.
You will have to determine the number of accounts you want and the type, such as checking accounts, credit cards, and so on, based on your specific situation. Opening new accounts is another way to get ready for divorce financially.
7. Open new credit cards in your name only
Opening a credit card in your name is the next thing on the divorce checklist. If you were married, you likely had joint credit card accounts. You should now open new credit cards in your name only.
Use your credit card wisely to build a positive credit score. Pay close attention to your spending habits as you make your way into the future.
8. Get a copy of your credit report
It is important to safeguard your credit during the divorce process. You can get a copy of your credit report by requesting it. You can check your free credit report every 12 months.
If you see any incorrect information, then correct the dispute right away. You will have a better idea of how to resolve the problem if you catch the error sooner.
9. Change your will
As you make this change in your life, you should consider what will happen to your legacy with a will. You probably don’t want your ex to inherit your assets. Afterward, take some time to choose your new beneficiaries and modify your will.
Depending on your state, you might not be capable of completely remove your spouse from the will until the divorce is final. You should take this action as soon as possible. If you don’t have an estate plan, it is also important to create one. Updating your estate plan is how you prepare for divorce while safeguarding your assets.
10. Update beneficiaries of your accounts
You may have accounts that names your spouse as a beneficiary. Examples may include your 401(k), life insurance, or brokerage accounts. Update the beneficiary designation on these statements as soon as possible.
If you are still in the process of getting divorced, these changes might require your spouse’s written approval. If so, it is wise to consult your attorney before proceeding.
How to prepare for a divorce while protecting your emotional wellbeing
Keeping your emotional welfare is one of the most important considerations to getting a divorce! Although finances play a big role in divorce, it’s vital to look beyond that.
You are making a critical life change. Take the time to visualize your new existence. Plan for your future and stay focused, as the big picture is what counts most.
As you work through the process, do not rush. It can be tempting to speed up your work to get through the procedure as quickly as possible. However, that can lead to erroneous results that could cause irreparable damage to your entire life. Weigh your options carefully before proceeding.
It may be simple to lose track of your values during this process. Be sure to maintain your integrity intact as you navigate this major upheaval.
It can be difficult to remain morally upright during a crisis. But when the crisis is ended, you will be glad to have remained virtuous. And more importantly, you can put yourself on the path to rebuilding your life.
Divorce checklist recap
It’s hard enough handling the emotional and logistical aspects of a divorce. The last thing you feel like doing is worrying about your financial health. Nevertheless, it is important to protect yourself from further harm. For that reason, here is a list of steps to take in order to get a divorce.
Preparing for a divorce properly will protect you financially
Knowing how to prepare for a divorce can save you from serious financial problems and emotional stress.
Take your time to consider all of your options, and do not feel pressured into making any decisions. At the end of the day, you will be able to obtain a smooth divorce by making careful decisions and carefully planned logistics.
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