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3 financial tips that can make a divorce easier

On Behalf of | Feb 2, 2023 | divorce

While you probably shouldn’t marry for money, a realistic understanding of your finances will be crucial when you divorce. Otherwise, your life could be much more complicated than necessary post-divorce.

Here are some ways to do that:

1. To separate your assets, you need to understand the full extent of them

Knowing that you have some money invested in something somewhere is not enough. If your spouse has taken charge of that kind of thing until now, you need to ask them to share the information when you are divorcing. If they don’t oblige, you might need to ask the court to order them to.

2. You also need to understand your debts

Maybe you have $130,000 in the bank. Yet, if you also have a $50,000 outstanding loan, you do not actually have $130,000, but $80,00. Many couples have several debts, be it personal loans, credit card debt or outstanding car or mortgage payments. Writing them all down will be crucial to building a complete picture of your dividable assets.

3. You need to draw a line under joint spending

Once you decide to divorce, you need to separate your finances. Leaving joint credit card accounts open could prove problematic if your spouse decides to comfort themselves (or avenge you) with a spending spree.

That does not mean you can just shut them out of the joint accounts or cards though. You need to work together to do it. Remember, you will both still need access to money to live during your divorce and pay fees arising from it. You will also need some joint money available to pay the bills.

Getting legal help to understand more about how to handle your finances during a divorce is best,