Making the decision to end a marriage can be emotionally challenging. You don't want to compound the stress that you feel when going through the divorce process by dealing with serious financial mistakes. Handling your finances properly as you prepare to file for divorce can help streamline the separation process and ensure that you don't encounter financial hardships in the future.
Here are three things that you can do to get your finances ready for a divorce.
1. Separate your accounts.
When you are married, it makes sense for you and your spouse to maintain joint financial accounts. As you decide to file for a divorce, you need to take steps to separate these accounts in order to establish financial independence.
Be sure that you each have separate checking and savings accounts, and cancel any joint lines of credit when possible prior to filing for divorce. Separating your accounts will make it easier to complete a division of assets when finalizing your divorce in the future.
2. Update beneficiary information.
Many married couples have life insurance policies and other financial assets that list a beneficiary. The beneficiary would be awarded a financial reward upon the death of the policy or asset holder, so many married individuals list their spouse as the beneficiary.
When you go through a divorce, it can be easy to overlook the fact that your former spouse is still listed as a beneficiary. Take the time to update all of your beneficiary information bu removing your soon-to-be ex and naming a new beneficiary as you prepare to go through a divorce.
3. Make copies of all financial records.
Even after your divorce has been finalized, you will likely need access to financial records from when you were married. These financial records can be used to facilitate the filing of your income taxes, the verification of accounts when checking your credit reports, and even as documentation when applying for a new car or home loan after your divorce.
Obtaining joint financial records for your divorce lawyer after you split from your spouse can be challenging, so it can be beneficial to make copies of all important financial records prior to your divorce. Each spouse can maintain a copy for his or her personal use in the future.
It can be nearly impossible to prepare for the emotional stress associated with a divorce. Taking the time to get your finances ready for the divorce process is a simple and effective way to reduce your stress levels as you go through one of the most difficult and emotional experiences in your adult life.
Share28 August 2017
