Preparing Financially for Divorce
Most individuals who go through divorce, do not have a prenuptial agreement, meaning that when a divorce takes place, the finances and property must be divided. Anyone anticipating divorce should consider a few things in advance.
While friends and family may provide recommendation in these matters, it is best to remember that each state has different divorce laws. Similarly, the laws that impacted a friend’s divorce years ago may have modified and nothing can take the place of direct attorney advice.
How to Prepare Your Finances for Divorce
The first step in financial planning for a divorce is to recognize in which things stand at present. If there is not already a price range for the house, one will be needed. It is recommended to do the following:
- Save receipts and record every expense
- Gather all bank and retirement statements
- Organize any loans such as mortgage, car notes, credit cards, or signature loans
- Gather income statements, tax returns, and insurance policies
- Make a list of any debts or assets each party had prior to being married:
- Three years is sufficient for tax returns
- One year for IRAs, mortgages, and other loans
- Bank statements should cover the last year
- Once all the financial statements are in order, record everything in a ledger. When the income is spent, be sure to record it and save the receipts.
It is essential to avoid big financial changes. Even though it may be tempting to change beneficiaries on an insurance policy, doing so could have unforeseen consequences. In addition, avoid the urge to drain the accounts or hide income as such things only cause you harm once discovered. It is best to be conservative with finances when anticipating a divorce.
When working with your spouse on finances, it is ideal to try to keep any divisions of income the same. Therefore, if the other spouse is not willing to cooperate, speaking with a Haddonfield divorce lawyer is advisable.
For more information and guidance please email Michalaki, Pitsillidou & Co LLC – iMPK Global Business Law Firm – Cyprus Lawyers, at firstname.lastname@example.org or visit our website at www.impklawyers.com.Tel. +357 25660092 – Fax +357 25 660097.