Most couples go into their marriages believing they will last forever. Half of those couples will end up divorced. The shock of that realization can make clear thinking and constructive planning difficult. Experts says it's very important to set the trauma aside long enough to be practical about the future. If you don't, you could end up in bad financial straits. A good beginning is setting up a detailed divorce financial planning worksheet.
One of the first questions your attorney will ask you is how much you know about your finances. You will need to gather all the documentation you can find in order to prove the accuracy of assets, income, and expenses. This includes titles and deeds for real estate, stock certificates, mortgage papers, and several months worth of checking and savings account statements.
You will need your 1099s and W-2s as well as tax returns for previous years. If you are old enough to receive social security, you need that documentation. Pension payments and child support you are currently receiving as the result of a previous relationship must be included. You should have an expenses worksheet detailing every monthly obligation you have, like house and car payments, utility bills, insurance, entertainment, and all medical expenses your insurance doesn't cover.
It may take several meetings between your attorney and yourself and your spouse and his attorney in order to iron out the details regarding joint assets. Everything must be itemized so everyone understands what's at stake. Included in this will be any retirement plans.
If there are business interests being transferred, you will want to structure the transition in such a way that you don't forfeit tax benefits. Many women choose to accept the first settlement agreement they are offered. This is almost always a mistake. They end up leaving money on the table that they have a right to and would have been a big help to them down the road.
Once you are free of the marriage, you need to be realistic and practical about your economic situation. Worksheets can be invaluable for tracking your credit score and managing your assets and liabilities. You will need to redo your will and change the beneficiaries on your insurance. Titles to the house, car, and any other tangible assets have to be put in your name.
Opening brand new savings and checking accounts is a good idea according to the experts. Even if you have one in your name only, your ex-spouse may have still have access to account numbers. He might be able to get your personal banking information this way and cause problems. You should meet early on with your tax advisor in order to minimize your tax liability.
Divorces are difficult. It's important to take care of yourself emotionally and financially. The more realistic and organized you are about your new situation, the more likely you are to get off to a good start in your new life.
One of the first questions your attorney will ask you is how much you know about your finances. You will need to gather all the documentation you can find in order to prove the accuracy of assets, income, and expenses. This includes titles and deeds for real estate, stock certificates, mortgage papers, and several months worth of checking and savings account statements.
You will need your 1099s and W-2s as well as tax returns for previous years. If you are old enough to receive social security, you need that documentation. Pension payments and child support you are currently receiving as the result of a previous relationship must be included. You should have an expenses worksheet detailing every monthly obligation you have, like house and car payments, utility bills, insurance, entertainment, and all medical expenses your insurance doesn't cover.
It may take several meetings between your attorney and yourself and your spouse and his attorney in order to iron out the details regarding joint assets. Everything must be itemized so everyone understands what's at stake. Included in this will be any retirement plans.
If there are business interests being transferred, you will want to structure the transition in such a way that you don't forfeit tax benefits. Many women choose to accept the first settlement agreement they are offered. This is almost always a mistake. They end up leaving money on the table that they have a right to and would have been a big help to them down the road.
Once you are free of the marriage, you need to be realistic and practical about your economic situation. Worksheets can be invaluable for tracking your credit score and managing your assets and liabilities. You will need to redo your will and change the beneficiaries on your insurance. Titles to the house, car, and any other tangible assets have to be put in your name.
Opening brand new savings and checking accounts is a good idea according to the experts. Even if you have one in your name only, your ex-spouse may have still have access to account numbers. He might be able to get your personal banking information this way and cause problems. You should meet early on with your tax advisor in order to minimize your tax liability.
Divorces are difficult. It's important to take care of yourself emotionally and financially. The more realistic and organized you are about your new situation, the more likely you are to get off to a good start in your new life.
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