You’re well aware of the impact divorce will have on your personal life, but the same holds true of your finances. If you don’t make informed decisions as you prepare for divorce, you could find yourself traveling down the wrong path as the process begins.
Here are three of the best ways to protect your finances with divorce on the horizon:
- Create an asset and debt division checklist: This outlines all of your assets and debts, both individual and marital. Without this, dividing property and debt is more difficult than it already will be. Once you have the basics, you can begin to assign values to each asset and debt.
- Consider paying off joint debt: If you have joint debt, such as a credit card, ask your spouse if they want to pay it off with savings before you go through your divorce. Doing so gives you one less thing to contend with as the process ramps up.
- Think about the future: As you prepare for divorce, think about what the future will bring. For example, create a post-divorce budget that provides a clear view of your expected income and expenses. You can use this to make key decisions in regards to how you’ll approach your finances down the road.
There’s no exact science to protecting your finances as you prepare for divorce, but there are things you can do to put yourself in the best situation possible.
You never know what’ll happen as you move through the divorce process, so prepare as best as you can for every possible situation. This will allow you to protect your legal rights at every turn of the road.