Financial considerations before divorce

There’s a reason that more divorces occur in January than any other month during the year. Many people want to start the new year with creating a new life. This means that people considering divorce don’t wake up with an epiphany on January 1st and decide to move on. These decisions are made months before and only culminate after New Years’ Day.

So what should you do in preparation for divorce? Our next few posts will attempt to answer those questions.

Gather all relevant financial documents – The most common issue during a divorce is splitting the marital estate. So potential divorcees must know about (or learn about) their complete financial situations. This includes assets (including real/personal property, retirement assets) as well as debts.

Create separate accounts – It is prudent to create accounts in your name only, including checking, savings and even insurance policies. This is especially helpful when it comes time to divide marital assets.

Establish agreements on joint assets – This applies to couples who own or rent homes together, or have joint car loans. As long as you and your spouse are on the mortgage (or lease agreement) you are jointly liable for payments made. Establishing agreements on who will be responsible maintaining payments will help in avoiding conflict down the road.

Consult an attorney – This may seem obvious, but many people avoid it because they fear the costs of having a consultation. Keep in mind that part of successfully managing a divorce involves analyzing the situation and knowing about your rights and options, so the fee for a consultation is worth the investment.

Source: AskMen.com, Financially Prepare for Divorce

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Financial considerations before divorce