Divorce is not something you plan for, but when you are considering it, you do need to do some planning. Here are five things you should get ready if you are thinking about divorce.
- Gather your financial documents. Especially if you are not the one who manages the finances, you should start gathering statements for your bank accounts and investment accounts. These documents will be key in filling out your financial affidavit and understanding your current financial situation.
- Start understanding and tracking where you are spending money. Any good plan starts with understanding how much you need to live. Knowing this information will allow you to negotiate smarter regarding your needs.
- Set money aside. Unfortunately, divorce is not cheap, and you and your spouse will need to pay for it. Ideally you will use existing funds and not credit to do this.
- Consult with a financial professional like a Certified Financial Divorce Analyst (CDFA). A CDFA can assist you before you decide on a divorce. The CDFA can assess your current situation and give you a starting point for what your financial situation might look like. The CDFA can also assist you with a budget and an understanding of your living costs.
- Consider your long- term family goals for you and your soon to be ex-spouse. The process you select for divorce can determine the outcome. A more family friendly divorce process such as mediation or collaboration can help you create a settlement that is fair for both and help you move forward with a more positive family dynamic.
Please contact us at 847-231-0990 if we can assist you with your financial review.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual, nor intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor. There is no assurance that the techniques and strategies discussed are suitable for all individuals or will yield positive outcomes.