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How to prepare finances for a divorce

On Behalf of | Jul 5, 2017 | Blog |

Many married couples end up getting divorced. In 2015 alone, the state of Washington had over 24,000 divorces take place, according to the Washington State Department of Health.

One of the biggest factors of any divorce is money. Assets get divided, and couples spend a lot of funds on the divorce process itself. People going through this time need to be wise about their finances so that once all this is over, they can be on the right foot fiscally speaking.

Gather all records

To make a divorce more manageable, it is recommended to get ahold of all financial records immediately. This includes:

  • Property information
  • Investment accounts
  • Bank statements
  • Tax returns
  • Benefits information

A person will need all these materials anyway when meeting with an attorney. Additionally, having all these documents should make all legal discussions go by much more quickly.

Budget appropriately

It costs a lot of money to get divorced. When it starts, the spouses should determine how much money they need for attorney fees and living accommodations. They can use previous yearly budgets for reference, but bear in mind that certain aspects, such as vacations, may change with the divorce.

Avoid huge financial decisions

Getting divorced is not the time to purchase a new house or car. It is also not a time to adjust insurance documents. There will be time following a divorce to adjust beneficiaries on a life insurance policy, but it is best to wait until that time and until an attorney advises it.

Prepare for rough patches

Even if two spouses still get along fairly well, money is always going to be a source of resistance. Spouses should be ready for some pushback on certain areas. Throughout the process, keep a level head and do not let emotions overpower common sense.

By planning ahead, divorced couples can get through this period of time all right. There is no reason for either party to suffer when they can reach amicable solutions.