For many people, getting a divorce is the most difficult thing they have ever had to do or experience in their lives. Getting a divorce uproots your entire life after you have gotten used to it for years or even decades. Divorces not only spell emotional turmoil, but they can also wreak havoc on your finances if you are not careful. Many people often underestimate the effect a divorce will have on their finances or simply make poor decisions because they are under pressure. One way to avoid making these mistakes and to set yourself up for success after your divorce is by preparing before you even begin the divorce process.
Know What You Are Working With
Before you do anything, your first task is to take inventory of everything that you own. You should take stock of all assets and have all pertinent documents on hand, including:
- Savings and checking account statements;
- Brokerage account statements;
- Pension and Social Security statements;
- Property deeds and car titles; and
- Any physical property you own, such as household items.
Do not forget to also take inventory of any liabilities or debts you may have. Gather all documents pertaining to these, such as:
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