It’s estimated that approximately 50 percent of all marriages will end in a divorce. This means that if you are married, there’s a 50/50 chance you will be filing for a divorce eventually.
When you make the decision to file for a divorce, you may not be thinking about your finances right away. After all, the psychological burden of your marriage coming to an end can be something that is all-consuming, which makes it difficult to think about anything else.
Also, the costs that are associated with divorce, such as legal fees and selling a home, can be complex and stressful. However, before filing for divorce, it’s a good idea to make specific financial decisions, which can help ensure you emerge from this difficult process on solid, financial footing.
Before you file the paperwork for a divorce, make sure to make the following financial moves.
Take Inventory of Your Financial Situation
A crucial thing that you can do if you are thinking about filing a divorce is to take a long hard look at your financial situation. This includes factors such s your salary, loans that are in your name, how much you have in your bank account, insurance policies, retirement accounts, credit card balances, and more.
You need to take time to account for all of your current assets and liabilities. Knowing what you owe and what you own can be invaluable when going through a divorce. It’s also important to get all this pertinent financial information organized. That’s especially the case because you will eventually have to sign a financial disclosure statement.
Check Your Credit Score and Your Credit Reports
You need to know your credit score and your credit reports before you file for divorce. Take some time to look at your overall credit history and figure out what your score means. This is extremely important if you have left handling the financials to your spouse.
If your spouse has been the one to take out loans and get credit cards, you may have a low credit score and not even realize it. As a result, it you attempt to purchase a vehicle after you get a divorce, you may not be approved, simply because your credit history is non-existent.
Look into Your Spouse’s Finances
In many marriages, there will typically be one spouse that handles most of the financial issues. If you don’t understand your financial situation, it can put you at a disadvantage during the actual divorce proceedings. Now is the time to learn about your spouse’s situation, before you move forward with this process.
In most cases, if you are planning to file for divorce, the best thing you can do is to work with a team of professionals who will keep your best interests top of mind. Usually this includes an expert on divorce finances and a divorce attorney. By getting your finances straight now, you can avoid problems as the divorce moves forward.