Prepare your finances for your divorce

| Jan 18, 2021 | Property Division

Divorce changes many aspects of your life. One of these is your financial situation. When you know that a divorce is in your future, you can take steps to prepare your finances for the split

There are several things that you can do to make this happen. Starting with these may help you considerably:

Gather documents

You need to gather copies of everything that has to do with finances so you have them for the property division part of the divorce. This includes current loan statements, credit card bills, bank account documents and anything else that relates to the money matters of the marriage. 

Expect expenses

Divorcing isn’t an inexpensive endeavor. Not only will you have the legal fees to take care, you’ll also have other expense that you need to cover. These include things like paying for housing and similar costs. Most individuals who are divorcing go from a two-income household to having to their household on one income. Budgeting may help with this aspect of divorce.

Protect your credit

Your credit may suffer after the divorce. This can occur because your debt-to-income ratio will change. The terms of the property division settlement may also be a risk. There’s a chance that the settlement will require your ex to pay some of the marital debt. If they don’t do that, however, the accounts may become delinquent, which will harm your credit scores. Creditors aren’t bound by the terms of the divorce settlement, so they don’t have to comply with it. 

It’s best to consult an attorney who’s familiar with situations like yours so that you can find out how your finances may be impacted by the divorce. This is also a chance to find out what else you need to do prepare for your divorce.