There are many challenges associated with the divorce process, with a large number related to your personal finances.
As soon as you realize divorce is on the horizon, it makes good sense to organize your finances and prepare for the future. This can go a long way in making the divorce process as pain-free as possible. It will also benefit you once the divorce is finalized and you are attempting to move on with the rest of your life.
Once both parties agree to a divorce, it is common for each person to hire an attorney. This gives them somebody who can assist with the process from beginning to end.
For many reasons, such as property division, you are required to organize your finances and share the information with the court. Every divorce court, regardless of where you live, requires a financial affidavit. This touches on details such as assets, liabilities, living expenses, and earnings.
Some of the things you want to collect include: life insurance policies, retirement plans, bank account statements, any loans that you have (solo or joint), most recent three months of pay stubs, and your most recent tax return.
No matter how organized you attempt to be, it is likely you will face some questions along the way. This is to be expected, especially if you have never gone through divorce in the past.
Do your best to organize your finances before divorce. This can save you time, while also allowing you to feel good about the steps you are taking and the progress you are making.
Source: U.S. News & World Report, “How to Get Your Finances in Order Before a Divorce,” accessed Nov. 23, 2015