The end of your marriage brings big changes to your life and finances. You may need to move. You will need to transition to a single-income household. You will divide your assets, including your savings and the investment you have made in your retirement.
Because of the number of changes that divorce can change your life, it can be essential to financial preparations before the end of your marriage. What steps should you take?
1. Track your expenses
How much do you spend on household bills? What costs do you pay for your children, including child care, education and other expenses? Whether you have closely tracked your budget or you are only starting, tracking your expenses will give you a good idea of the costs you face every month and help you project the cost of life moving forward.
2. Keep an inventory.
Receiving your fair share of property may depend on knowing what you have. Creating an inventory can be a critical step toward protecting your financial health. List your assets, organize your ownership documents and classify those assets as either jointly-owned or separately-owned.
3. Take care before making big decisions.
When you have decided to end your marriage, it can be tempting to get as many details out of the way as possible. However, changing the beneficiaries for your accounts or making significant purchases to prepare for single life can lead to issues during your divorce proceedings. Spend your money the way you did before, and consider getting legal advice before making significant changes.
By taking care during your divorce, you can lay the groundwork for your financial health in the next stage of life.