How to Navigate Divorce Financials Smoothly
There is a way to “hit the easy button,” so to speak, and have a professional help you. While many think to call a lawyer right away (which certainly isn’t a bad idea), the second pro you may want to consider is a financial advisor.
Finances are often one of the most difficult parts of a separation - and depending where you live, whether or not you have minor children together, and your unique financial situations (as a couple and individually), there will be variables no simple blog can solve for you.
However, with some careful planning and the help of the right pros, you can make it work. Read on for your advice that might help make the process run more smoothly.
Separate Your Finances ASAP
Chances are, no matter how long you’ve been married, some or all of your finances are tied together. Some couples choose to have joint accounts, while others keep money separated. Regardless, there are likely bills you have (think: house mortgage) that you are both responsible for, as a couple.
As soon as it is feasible, you should communicate the separation of your finances with your spouse or soon-to-be ex. Discussing what to do with financial matters moving forward is best sorted between the two of you.
If that kind of cooperation is unrealistic, adding a professional like a mediator or lawyer can be another great solution to the communication barrier. Chances are there are hurt feelings, anger, and frustration at the core of the divorce. Having someone else handle the back-and-forth helps to create a buffer between the spouses.
Document Everything
No matter what choices you make, from the onset, you want to be sure you have solid documentation. Keeping a file of bank statements, bills, and purchases can help to settle questions down the road. If you get off on the right foot by maintaining well-organized finances now - no matter the previous state of your records - it will help everyone in the long run.
Consider the Less Obvious
Typically, couples who face divorce immediately think of the big picture items. Who gets the house? What about the cars? What will custody (if you have minor children together) look like?
These are not, however, the only matters that will need to be discussed. Think about questions like: Who will file next year's taxes? Who will be responsible for the current bills? How will we separate healthcare and insurance policies?
Sit down and document each and every finance you need to weigh, and figure out how to best approach each one. Perhaps the two of you are amicable and can sort it out, or perhaps that is best left to the lawyer. Either way, mapping out your questions will help you get answers more efficiently.
A New Financial Future
No matter what happens once the dust settles, you will have a different financial outlook than you did while married. It may be better. It may be worse. There are too many variables in each individual’s life to know for sure.
That doesn’t mean you can’t plan for that future! Know your own credit score. Know your income. Know your future goals. Having a realistic picture of where you are headed (not to mention working with a financial professional) can help you create fresh start.
A Helping Hand
Chances are, when your friends and family hear of the divorce, you will get plenty of advice. Albeit well-meaning, and perhaps even from first-hand experience, it is best to seek the professional advice of both a lawyer and a financial advisor.
Laws change all the time. The best methods years ago may not be the best solutions for today. When handling such murky waters, it is ideal to consult professionals.
If you find yourself in a divorce scenario, feel free to reach out to my team. We are always here to lend a helping hand, no matter your financial struggles. Schedule a no-cost, no-obligation consultation right here.
There will be a lot weighing on you in the months and years to come, following a divorce. Many things will change. Having a trusted financial advisor will help. Reach out today and take that worry off of your plate!
