If you’ve decided to leave your partner, or vice versa, it is a very challenging time. Filing for divorce is one of the most difficult things that can happen in your life. And to make matters worse, you will end up having to deal with difficult money issues during the process as well. Here are some things that you need to know about divorce and money.
Preparing for Divorce
The first thing you need to do is understand your financial situation. This is especially important if one person handled the finances during the marriage. Get all your paperwork together, and even consider opening your own personal online account at Mint to compile all your information.
Finances are the most common cause for divorce, so you also want to check your credit and make sure that you know what is on file. Don’t take on additional debt during the divorce, and instead try to keep as much in cash as possible.
Also, make sure that you’re able to provide for yourself. This may include getting a new job, or even making sure that you have insurance. Many couples rely on just one spouse having health insurance for the entire family, and so you may need to look at getting your own insurance.
Dividing Up Assets
Finally, you need to divide up the assets from your marriage. It is important to really pay attention to this part, because what may seem like a good decision today may not make sense in the future. Plus, a lot of people opt for quick and streamlined, which in some circumstances, may result in missing obvious things.
As such, you should make sure that you have a clear picture of all assets involved – not just joint assets, but other assets including any retirement funds your spouse may have, and even hard assets like collectibles.
You also need to be realistic about the future and plan for it. A financial adviser may be a good choice to help you see the money options, and show you how you can make the most of what you have.
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