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 need to gather your W-2 and 1099s along with tax returns for the previous year. The attorney will want to know about social security, unemployment benefits, pension payments and any child support you may be getting from a previous relationship. You will have to add every expense you have to your worksheet. This will include the house payment, car payment, childcare, utilities, insurance, entertainment, and any medical expenses not covered by your insurance.
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 business interests are going to be transferred, you don't want to do anything that will forfeit tax benefits. A lot of women make the mistake of accepting a quick settlement in order to get the process over as quickly as possible. What ends up happening in many of these instances is an unfair dispersal of assets that makes life post-divorce much more difficult than necessary.
Once the divorce is finalized, you will be responsible for your own finances and keeping track of things like your credit score and monthly payments. Setting up worksheets for income and expenses can be extremely helpful, especially if you relied on your partner to handle the finances when you were married. Practical matters like changing your will and putting the house, car, and other tangible assets in your name have to be done.
Experts advise newly single individuals to open new checking and savings accounts. They say closing all old accounts is a good idea, even the ones that were in your name only. Spouses often have account numbers that make it possible to access the old accounts and create mischief. You should have a meeting with your tax advisor to discuss minimizing any tax liability asset transfers may cause.
Divorces are stressful, traumatic experiences. It's important to protect yourself and your financial future during the process. The more practical and organized you are the easier it is going to be to get on with 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 need to gather your W-2 and 1099s along with tax returns for the previous year. The attorney will want to know about social security, unemployment benefits, pension payments and any child support you may be getting from a previous relationship. You will have to add every expense you have to your worksheet. This will include the house payment, car payment, childcare, utilities, insurance, entertainment, and any medical expenses not covered by your insurance.
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 business interests are going to be transferred, you don't want to do anything that will forfeit tax benefits. A lot of women make the mistake of accepting a quick settlement in order to get the process over as quickly as possible. What ends up happening in many of these instances is an unfair dispersal of assets that makes life post-divorce much more difficult than necessary.
Once the divorce is finalized, you will be responsible for your own finances and keeping track of things like your credit score and monthly payments. Setting up worksheets for income and expenses can be extremely helpful, especially if you relied on your partner to handle the finances when you were married. Practical matters like changing your will and putting the house, car, and other tangible assets in your name have to be done.
Experts advise newly single individuals to open new checking and savings accounts. They say closing all old accounts is a good idea, even the ones that were in your name only. Spouses often have account numbers that make it possible to access the old accounts and create mischief. You should have a meeting with your tax advisor to discuss minimizing any tax liability asset transfers may cause.
Divorces are stressful, traumatic experiences. It's important to protect yourself and your financial future during the process. The more practical and organized you are the easier it is going to be to get on with your new life.
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