4 financial steps to take before your divorce

On Behalf of | Aug 31, 2022 | High-Asset Divorce |

Because divorce has serious implications for your finances, it is important to take stock of them before you initiate any proceedings. This way, you know exactly where you stand.

U.S. News and World Report recommends some important financial steps you should take before your divorce.

1. Consider ways to save money on your divorce

Regardless of which method of divorce you choose, it will probably end up costing more than you expect. Nevertheless, mediation and other methods of alternative dispute resolution can cost less than litigation. These may be options if you and your spouse are splitting on amicable terms.

2. Avoid big financial commitments

You and your spouse should put off any significant purchases that require both your incomes. Any big purchases you make now, you have to split later.

3. Apply for your own credit card

If you do not currently have a credit card in your own name, now is the time to apply for one. Divorce can cause financial chaos, which could make it harder to obtain a credit card later.

4. Organize your finances

When you file for divorce, you will have to account for all your income, savings, assets, property, debts and tax liabilities. It is helpful if you find and organize all that information now so that it is ready when you decide to file. This is especially important if you have had little responsibility in managing household finances.

Organization of your household finances could also help if you believe your spouse is hiding assets or have reason to suspect that he or she may attempt to do so.