Tips to Prepare for a Divorce
October 15, 2020
Divorce is difficult, especially if you are not the initiator. A divorce without thorough preparation is even worse. Poor or lack of preparation can affect asset division, debt division, child support, child custody, spousal support, and almost all other aspects of the divorce. Below are some tips to help you prepare for a divorce.
Create an Inventory of Assets
You should know the nature, number, and value of your assets. Asset information is important because:
- The court will divide your marital assets equitably. If you don't know all the assets and their respective values, you might end up with an unfair share of the assets.
- Your respective income and assets determine child support amounts. If you don't account for all the assets, you might pay or receive less child support than you should — depending on the situation.
- The value of your assets affects spousal support.
Therefore, investigate the location of your assets and make copies of their documents. For example, you should make copies of title deeds for all your real estate properties and bank accounts.
Document Your Respective Incomes
In addition to assets, your incomes also affect child support, spousal support, and asset division. Thus, you should know how much each of you earns. Don't just focus on regular income from your day jobs. Include all sources of income, such as:
- Bonus payments
- Dividends
- Rental income
- Income from side businesses
Again, gather evidence for all these sources of income. For example, you should make copies of pay stubs, your businesses' financial statements, and tax returns.
Document Your Debts
You will divide both your assets and debts during your divorce. You should know the true nature of your debts so that you don't end up paying more than you deserve. You should also document why you took each debt and whether you used the money for the intended purpose.
Documenting your debts will also help you know if your spouse incurs additional debt between the divorce filing and its finalization. That might help you deal with the dissipation of assets, for example, if your spouse incurs a huge debt for their enjoyment.
Update Your Estate Planning Documents
If you included your spouse in your estate documents, as many couples do, then you should reconsider their inclusion. For example, you might not want your spouse to hold your financial power of attorney if you are going through a divorce. You can't be sure that your spouse will honor your financial wishes in case something happens to you during the divorce.
Cancel Joint Financial Accounts
You also need to disentangle your finances from those of your spouse. For example, you should cancel joint credit cards and close joint bank accounts. This precaution will prevent your spouse from wasting your money or running joint credit.
In fact, you should open credit and bank accounts in your name. Use the accounts to start repairing your credit history since a divorce hurts people's credits more often than not.
Document Family Budgets
Lastly, you should document two types of family budgets. First, you should create a detailed budget for your household in the recent past. This budget will determine your standard of living during the divorce. Secondly, you should prepare a budget for your potential expenditures, such as rent and utilities, after the divorce. Both budgets will affect child and spousal support calculations.
In addition to all the above tips, don't forget to hire an experienced divorce attorney. The attorney will help you prepare legal documents, protect your legal rights, and advocate for your fair share of assets. Budget Divorce Center has experience in all these aspects of divorce — and more. Contact us
so that we can start work on your case as soon as possible.
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