How to Financially Prepare for Divorce

Divorce is a very challenging and emotionally draining process, but it’s essential to understand how your financial landscape will change before, during and after your divorce. It can be overwhelming to deal with on all fronts.

When you and your spouse choose the collaborative divorce process you are paired with divorce professionals such as a financial neutral, divorce coach and mental health experts that are committed to helping you and your spouse divorce peacefully and respectfully while staying out of court.  This process generally costs much less than court and is private, unlike court.

We are often asked how our clients can prepare for their divorce, and here are some steps we encourage them to take to prepare for their divorce financially:

• Open a checking account in your name
• Sign up for a credit card in your name only
• Organize your finances- gather statements from bank accounts, credit cards, loans, mortgages, incomes and investments
• Create a budget for both pre- and post-divorce
• Adjust your spending habits where you can
• Make sure to account for future alimony and child support payments
• Work with the financial neutral to gain insight into what your financial picture will look like once your divorce agreement is finalized
• Protect your virtual assets – change passwords when warranted
• Make sure you have access to all joint accounts and assets – document all transactions

With careful planning and proper support, you can emerge from divorce with a solid financial foundation and a clear path forward.

Collaborative Practice San Diego is a nonprofit, multi-disciplinary referral network of independent professionals of attorneys, mental health professionals and financial advisors working together to learn, practice, and promote Collaborative processes for problem-solving and the peaceful resolution of family law issues, with an eye toward preserving the emotional, as well as the financial assets of the family.

Contact us today to see how we can help you and your spouse work towards a peaceful resolution for your marriage.

Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental health or tax professional to determine what will work best for your situation.