Divorce inspires a variety of major changes in an individual’s life. Obviously, their family circumstances shift substantially. Their finances are also likely to go through a major adjustment. Divorce can be quite expensive, and people have to prepare to divide their property. Those who approach the process with a focus on their long-term financial recovery may have an easier time rebuilding their lives than those who let their emotional reactions to divorce control their behavior.
What steps can people take to start financially preparing for divorce?
Gather documentation as soon as possible
The best time to start preparing for divorce is before spouses ever discuss the idea. Once divorce is on the table, some people may begin trying to manipulate financial matters for their own benefit. They might delete or alter certain financial records. They might start moving certain assets out of the marital home to hide them. People who gather basic financial documentation ahead of time and who create an inventory of assets before openly discussing divorce may have an easier time securing an appropriate outcome to property division proceedings.
Learn about the rules of the process
There are rules that apply to everything from child support and spousal support to property division. Nothing sets people up for failure more quickly than unrealistic expectations. Learning the basics of community property division standards and the rules for different forms of financial support can help people prepare for divorce. They know what kinds of support they can request and what they might have to pay. They also have an idea of how the courts might divide their property, which can make it easier for them to find compromises when negotiating with a spouse.
Set priorities early
People who maintain a big-picture focus throughout divorce are often happier with their outcomes in the long run. Therefore, it is a smart move to establish specific priorities before the divorce occurs. For some people, the main goal might be preserving retirement savings or staying in the marital home. For others, addressing marital debts or ensuring they retain a vehicle might be the most important consideration. People who have clear priorities can focus on achieving those goals and can compromise when it comes to other aspects of the divorce process.
People who begin preparing financially as early as possible can diminish the financial challenges that come from getting divorced. Understanding what is possible under the law is important for those who want to enjoy financial stability after the end of a marriage.