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How can you prepare your finances for divorce?

On Behalf of | Oct 28, 2021 | High Net-Worth Divorce

Before the divorce, emotions are still fresh and fear of the future may be overwhelming. One of the significant uncertainties revolves around a couple’s finances. Do not wait until you find yourself amid divorce proceedings to prepare your finances for the split.

According to U.S. News, there are a few ways to protect your assets and your future.

Start with organization

Before you can prepare your finances for the future, you need to organize them. Take stock of all of your assets and all of the money within each of your accounts. You should have a list of your accounts and all of your spouse’s accounts. Neither of you should have any uncertainty about your financial situation. If you do not typically control the finances, you need to investigate them, gather old tax returns and accounts statements.

Monitor your finances

When it comes to financial decisions, make sure you pay attention to where your money goes. Frame critical financial decisions regarding what may be necessary to your family and your future. Likewise, when you monitor your finances, you can see if your spouse moves money or tries to overspend during the divorce.

Split your accounts

If you have a joint account with your spouse, you need to open up a checking account for yourself. You should close and reopen credit, bank and brokerage accounts. This will create a clear separation between your finances and your spouse’s finances. If you do not have credit cards in your name only, begin to apply for a credit card where your spouse does not have access to the account.

While it may be tempting to spend money during the divorce, try to save as much as possible. If you appear irresponsible with your money, your ex could try to use it against you during the divorce proceedings.

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