If you are considering divorce, now may be the right time to consult with a financial advisor to determine the effects divorce proceedings will have on your budget and financial situation. Seeking financial advice before divorce may give you a much better idea of what you can expect during and after the separation of your assets and liabilities during the divorce process. Here are some guidelines to keep in mind when planning for a divorce from a financial standpoint.
Work With a Professional
While close friends and family members may have suggestions for you regarding managing your finances during and after a divorce, they may not have all the facts and may offer incorrect advice for your situation. Working with a financial planner with proven experience is the best strategy for managing your finances throughout the divorce process. By working with a professional, you can achieve the best results for yourself, your children and your future.
Begin the Administrative Process
A lot of the work involved in separating your finances from your former spouse is administrative. Doing things such as closing joint credit accounts and transferring your direct deposits to a new bank account in your name only can protect you from unexpected actions by your partner during the lead up to your divorce proceedings. You may also need to change your medical directives and remove the power of attorney from your former spouse as well as changing the beneficiaries of your life insurance policy, pension, and other retirement accounts. If you do not have credit in your name, now may be the best time to begin establishing your own credit history to improve your financial situation in advance of your divorce proceedings.
Take Stock of Your Situation
Especially if you have children or teenagers to consider, looking at the bills you pay and the expenses you have every month can help you create a budget for your future. By seeking financial advice before divorce proceedings begin, you may be able to determine the amount you will have available for rent, if necessary, and to manage the unexpected costs that often arise for parents. Taking a thorough inventory of your financial situation and the outstanding debts and expenses you must meet every month can allow you to make good decisions and proceed with greater awareness of your financial situation during your divorce proceedings.
Consult With an Attorney
Working with a mediation attorney can be a good way to determine your legal rights and responsibilities before beginning divorce proceedings. These professionals can provide you with guidance on the laws applicable to your case and the likely financial repercussions of a divorce on you, your children and your former spouse. By taking the time to consult with a qualified and experienced mediation attorney, you will be laying the right groundwork for a better future.
Planning can be a critical step in protecting yourself financially in a divorce. Working with professionals in the legal and financial field is often the best course of action when planning for a divorce.