Separating Your Emotions from Your Finances
There are many parts to breaking up, including breaking up legally, physically, emotionally, and financially. Women, in particular, must recognize that all these parts come into play when divorcing, and must be separated. Aim to separate your emotions from your finances, including treating the financial part of your divorce as a business transaction. By Ellie Lipschitz and Dorian Brown Focus on your financial future. Keeping your emotions in check is key to managing your money throughout your divorce negotiations, and more importantly, the long term. A forward-looking focus gives women t...
9 Steps to Start Separating Your Finances During Divorce
As you take steps to separate your finances, you should document all of your assets and liabilities at the time of separation. Here are the steps you should consider to start managing your finances early in the divorce process. You need to start to minimize the financial ties between you and your spouse during the divorce process. A joint account mean that you’ll continue to be attached to your spouse’s spending habits and debts – not only during the divorce process, but even after the divorce is finalized. It may not be possible to close all of them before your divorce is finalize...
List Your Debts and Liabilities
Compiling a list of all your liabilities – including all loans, mortgages, and other debts – is an important aspect of preparing for your divorce. During your divorce process, when you start to make a list of your liabilities or debts, make sure to include all of the following items owed by you and your spouse – both individually and together. Loans: including car loans, educational loans (for tuition), personal loans, business loans, promissory notes, and lines of credit Financing household equipment: including appliances, electronics, furniture Mortgage(s) Home equity loan...
List Your Assets
Creating a detailed list of all your assets, from real estate to retirement plans, can help simplify the property-division process during divorce. When you start to make a list of your assets, make sure to include all of the following items owned by you and your spouse – both individually (separate property) and together (marital property). Use the “Asset Worksheet” to help you complete this task. Financial Accounts/Investments: including bank checking and savings accounts, certificates of deposit (CDs), mutual fund accounts, stocks, bonds, and other financial investments Pensio...
Document Your Financial Information
Collecting your financial information before meeting with your lawyer and/or financial advisor will save both time and money during the divorce process. Here’s a list of the documents you’ll need. Your divorce lawyer and your financial professional will need information about your financial situation in order to assess your case. Collect the following documents before meeting with your lawyer and/or financial advisor to help save both time and money during the divorce process: Copies of separate and joint tax returns for the most current tax year and the three previous years. This i...
Collect Your Financial Information
Collecting financial information and creating a budget will help your divorce lawyer and financial advisor do their jobs most effectively – and let you know where you stand. Your divorce lawyer and your financial professional are going to ask you to gather information and documents for them, so you might as well start this process now. Here are some things you should consider and prepare for as you go through the divorce process. Early Divorce Stages If you are in the early stages of your divorce you will need to compile information regarding all the assets and debts acquired during m...