Even when you feel as though you are well prepared for your impending divorce, surprises can leave you financially struggling. Unfortunately, even the best efforts to prepare may prove insufficient due to your inexperience with the process.
There are a few key financial considerations that you must keep in mind as you prepare for your divorce.
Review your accounts before you separate
If your spouse has always been the one to handle the banking and the bills, take some time to review the accounts before you separate. Familiarize yourself with the expenses and monthly income as well as the balances of any retirement accounts, investment funds or other assets. It is important that you understand these things to prevent hidden assets in the divorce agreement.
Be realistic about your expenses
It’s easy to underestimate your expenses when you fill out the financial affidavit. Especially for those who are transitioning into their own property and living situation, it is important to consider all of the applicable expenses. Include your rent, any childcare expenses you may now incur and any additional debt payments you take on because of the separation.
Fight for your fair share
Even if you and your spouse have agreed to split everything fairly, you need to be vigilant about the outcome. Know what is most important to you and be willing to negotiate for it.
Reaching a fair and reasonable divorce settlement takes careful consideration. Consider these key financial elements to ensure that you are ready for your divorce and prepared to settle.