An impending divorce can set the ball rolling for a myriad of changes for both parties. Arguments regarding property division, child custody and child and spousal support are just some of the contentious issues that will come up during the divorce.
And while you may feel overwhelmed, putting your house in order (financially speaking) can help you safeguard your finances both during and after the divorce. Here are three crucial financial steps you need to take as soon as it becomes clear that you are headed for a divorce.
Gather crucial financial documents
When you set out to dissolve your marriage, the court will require you to make full disclosure of what you own (and owe). This crucial legal requirement is meant to ensure that marital property is divided equitably per Florida property division laws. Failure to fully disclose marital assets, intentionally or otherwise, can cause serious legal problems for you.
Some of the financial information you need to put together includes:
- Physical assets
- Cash and investment accounts
- Debts
- Household expenditures
- Retirement accounts
Create a budget
While married, you probably shared household bills. When you go your separate ways, however, you will need to rely solely on your income. And if the court orders you to pay child and spousal support, then you can be sure your finances will be strained even further. Budgeting allows you to get the real picture of your financial situation.
Revise your estate plan
If you named your spouse as a beneficiary in your will or trust, and you no longer wish to leave anything for them, then you need to update your estate plan to reflect your current wishes. Likewise, if you assigned them financial power of attorney, you may want to strip them of this responsibility.
Get the help you need
The importance of financial planning under any circumstance cannot be overstated. The stakes get much higher when divorce gets into the picture. Find out how you can safeguard your rights and interests while sorting out your financial issues during the divorce.
