You have a substantial to-do list after you and your current spouse decided to divorce. Protecting your finances represents a primary concern, and you want to feel well-prepared.
NerdWallet offers tips for getting your monetary house in order for divorce. Do not let avoidable financial mistakes ruin your post-divorce life.
Track current and future finances
As soon as possible, track all the expenses you must keep paying after your divorce. The information helps you develop a post-divorce budget, and you may need it for legal proceedings. Use credit card and bank statements to develop your budget and anticipate future finances. For instance, you could have a yearly credit card membership fee payment coming up in a few months.
Reconsider advice from friends and family
Divorced friends and relatives may offer advice intended to help you navigate divorce. Take everything they say with a grain of salt, as divorce cases differ from person to person and state to state. Let experienced professionals help you decide whether to shift accounts or move money.
You want reliable proof of your finances during your marriage. Gather documents such as retirement account, savings and checking account, credit card and investment account statements. Also collect pay stubs, income tax returns and loan ledgers.
Rethink major monetary decisions
Before changing your insurance policy, retirement accounts or will, think twice. Divorce proceedings may have a major effect on your monetary health, so making big financial changes before reaching the end of the road could end in disaster.
Knowing what awaits on the financial road ahead may give you peace of mind. With these tips, you may set yourself up for financial success.