Financial Preparation For Divorce - 6 Steps to Secure Your Financial Future
Divorce is a costly proposition for couples.
The non-breadwinner often takes a standard of living cut when a divorce takes place.
Since the homemaker, usually the woman, often gets primary custody of the children, it is doubly important that finances are secure to provide a stable environment for the children.
Here are 6 steps you can to take to ensure the best possible outcome with the fewest bumps along the way: 1.
Hire a good attorney immediately.
Do not make the mistake of "trusting" your spouse to take care of your best interests.
Anytime there are properties, assets, or child custody issues, a lawyer is needed.
The attorney will ask you for documents pertaining to all your financial records, including tax returns, insurance policies, bank statements, investments, mortgage statements, and W-2's.
2.
Get a credit card in your name NOW.
While your credit is still combined with your spouse's, secure a credit card in your name only.
Don't be discouraged if you are turned down by one company.
Try again with a different company.
3.
Get your own bank account and place an emergency stash of funds in it.
While you will be disclosing this money and splitting it, having this cash available in the meantime is important in case your spouse (wrongfully) tries to freeze accounts or otherwise control your access to money.
While the attorneys are sorting it out in front of a judge, you need to be able to access funds for basic needs.
4.
Create a realistic budget for you (and your children) to live on.
Include rent/mortgage, insurance, car payments, utilities, food, gas and car maintenance, healthcare costs, clothing, toys, entertainment, HOA dues, property taxes, and any other fixed expenses.
5.
Borrow money from a family member if possible.
If you can get interest free (or gifted) money and count it as a debt, you can work that into the debt settlement and walk away with more cash in hand.
6.
Begin planning for your future vocation/career.
Though you may be entitled to some type of spousal support, think realistically about the future once the support has stopped.
If you are not working, or your current job does not have enough potential to provide for you and your children, start looking at your options.
Consider researching careers online or hiring a career coach to help you determine your skill set and their application to career options.
The non-breadwinner often takes a standard of living cut when a divorce takes place.
Since the homemaker, usually the woman, often gets primary custody of the children, it is doubly important that finances are secure to provide a stable environment for the children.
Here are 6 steps you can to take to ensure the best possible outcome with the fewest bumps along the way: 1.
Hire a good attorney immediately.
Do not make the mistake of "trusting" your spouse to take care of your best interests.
Anytime there are properties, assets, or child custody issues, a lawyer is needed.
The attorney will ask you for documents pertaining to all your financial records, including tax returns, insurance policies, bank statements, investments, mortgage statements, and W-2's.
2.
Get a credit card in your name NOW.
While your credit is still combined with your spouse's, secure a credit card in your name only.
Don't be discouraged if you are turned down by one company.
Try again with a different company.
3.
Get your own bank account and place an emergency stash of funds in it.
While you will be disclosing this money and splitting it, having this cash available in the meantime is important in case your spouse (wrongfully) tries to freeze accounts or otherwise control your access to money.
While the attorneys are sorting it out in front of a judge, you need to be able to access funds for basic needs.
4.
Create a realistic budget for you (and your children) to live on.
Include rent/mortgage, insurance, car payments, utilities, food, gas and car maintenance, healthcare costs, clothing, toys, entertainment, HOA dues, property taxes, and any other fixed expenses.
5.
Borrow money from a family member if possible.
If you can get interest free (or gifted) money and count it as a debt, you can work that into the debt settlement and walk away with more cash in hand.
6.
Begin planning for your future vocation/career.
Though you may be entitled to some type of spousal support, think realistically about the future once the support has stopped.
If you are not working, or your current job does not have enough potential to provide for you and your children, start looking at your options.
Consider researching careers online or hiring a career coach to help you determine your skill set and their application to career options.