One of the most important aspects of getting a divorce is maintaining proper and wise financial management. But not only do you want to make financial decisions that are smart, you will want to ensure that you don’t make any financial decisions that will cause you to come into further conflict with the spouse you are divorcing, in order to try and keep things as amicable as possible.
With that said, here are the top seven financial moves to make now for an amicable divorce:
1) Collect Important Paper and Documents
There are several important financial papers and documents that you will need to gather before your divorce.
These include, but are not limited to:
- Checking Accounts Statement
- Retirement Account Statements
- Investment Account Statements
- Tax Returns For Last Three Years
- Pay Stubs For Last Year
- Credit Card Statements For Last Year
- Ledgers For Mortgage, Auto Loans, and Personal Loans
Need help with what items to collect? Grab your copy of our
2) Close Joint Accounts
As part of the divorce you will need to close joint accounts that you and your spouse share. This includes both your bank accounts and your credit accounts.
For your credit card accounts especially, make sure that your spouse doesn’t run up the debt on any of them, as you will be responsible for those accounts as well.
That’s the whole purpose to having a joint account to begin with: both names on the account are fully responsible for any charges incurred.
3) Open New Individual Accounts
For your personal individual account, make sure that your spouse (soon to be ex-spouse) is not added as an authorized user. You can also obtain credit before you divorce in order to secure a higher credit limit, as it will be based on your pre-divorce income.
4) Compile A List of all Debts and Assets
This one will take time but it is also fully necessary to do. It’s fully expected to rack up even more debt during the divorce process as well.
Before proceeding with the divorce, both you and your spouse should make a list of all debts you have, from student loans to car payments to mortgage payments to personal loans to credit lines and so on.
Then, separate those debts into ones you owe together and individually.
5) Be Financially Responsible
Don’t be spending money like crazy during a divorce. If anything, you’ll need to spend a lot less. Divorces are very expensive, and you can easily rack up more during them as we just discussed.
6) Hire A Divorce Financial Analyst
It may actually be we wise to hire a divorce financial analyst who can help you to better prepare for your financial split.
Your divorce financial analyst can help both you and your spouse in the following ways:
- Locate Hidden Assets
- Assuring That All Your Information Is Complete
- Give You Both A Long Term Financial Forecast
- Develop A Budget For The Both Of You
- Mediate Financial Agreements
7) Don’t Be Vengeful
Last but not least, don’t be vengeful towards your spouse. Just as you don’t want them to rack up debt on your shared credit cards, don’t do the same yourself. Don’t try to hide any assets from them, and just try to do everything you can for the process to be as smoothly as possible.