Four tips on how to split your finances in a divorce
No one looks forward to going through a divorce. Even if you think splitting is the best thing for your well-being, the divorce process itself can be difficult and stressful. One of the main reasons behind this is money.
Money is a leading source of stress, and when going through a divorce, it is one of the first items on the list that needs to be dealt with. Everyone’s circumstances are different. What you will need going through your divorce will depend on your specific circumstances. However, if you need some basic advice to help you get started, here are some tips on how to split your finances in a divorce.
How to split finances in a divorce
- Track your budget — Your budget includes every detail about money coming in and money going out on a monthly basis. Once you know a divorce is on the horizon, you need to keep track of all of your household income and expenses. This will help divorce attorneys split assets and debts in a fair manner once the divorce is finalized.
- Document everything — It is difficult for the court to make decisions based on your word alone. You need to gather documentation relevant to finances in your marriage that can be used as part of the divorce process. This includes:
- Bank statements
- Investment account statements
- Retirement account statements
- Credit card statements
- Loan statements
- Income tax returns
- Spend wisely — It is best to avoid making major financial decisions when going through a divorce because these can be used against you later when divorce lawyers are deciding on how to fairly split assets.
Of course, you still need to spend money on food and other necessities, but you should refrain from doing something wild like using a credit card to buy a new car before the divorce. And remember, whatever you do spend, document it.
- Get help from professionals — Whether your divorce is amicable or stressful, you may need to contact a lawyer and financial professionals to help you through the process. Lawyers and financial professionals can work with you to help you make sure you are covering all the necessary steps and are doing the best to protect your financial well-being before, during, and after the divorce.
Talk to a ProVise CFP® professional about how to split your finances in a divorce
At ProVise Management Group, our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance, and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.
Are you a woman figuring out how to sort your finances after a divorce? You can also join us for one of our Savvy events hosted by Susan Washburn, CFP®, JD, Senior Financial Planner. These are free events designed to build a community of strong women who want to learn more about managing their money.
Are you ready to talk to a professional about how to split your finances in a divorce? Contact ProVise today to schedule a complimentary consultation.