Preparing for DivorcePreparing for divorce can not only
reduce legal fees
when it comes time to hire a
divorce lawyer
or
file for divorce
but it can also help ensure the divorce is an equitable one.
People dont just wake up one morning and decide to get divorced. If your spouse announced they were leaving or just needed some time alone, they likely have been thinking about it for awhile. They likely have also contemplated the economic repercussions of that decision and their own
financial survival.
It is therefore important to begin collecting the financial records you will need to
file for divorce
as early in the
separation
process as possible before they become difficult or impossible to access.
I had a woman come into my office one day whose husband left her without warning. As he left, he indicated he would continue to support her and the kids by paying the bills and financially maintaining the household. As soon as he was set up in his own place, he stopped providing any support whatsoever. Finding herself in a very difficult position, she sought out legal help.
Unfortunately, all the
divorce lawyer
had to go on was her word because all the financial records had been removed from the home. She could not prove he had any income as he was self-employed and she did not have any copies of his tax returns, financial statements or bank statements. He had always handled the financial matters and she had no idea how to get her hands on any of the information she needed let alone what info she needed.
Preparing for divorce by having the following information collected and with you when you meet with your
divorce lawyer
for the first time or as you go about
doing your own divorce
will greatly simplify the process.
Your marriage certificate
Pre-nuptial agreement if you have one
Post-nuptial agreement or separation agreement
A list of the children of the marriage and their dates of birth
Copies of credit card and line of credit statements for the last 12 months to aid in identifying who created what debt.
A detailed listing of debts and the current outstanding balance. Outline non-marital debts (debts incurred before the marriage like student loans) and marital debts (for example - the mortgage on the family home)
A detailed list of assets and their current value. Outline non-marital assets like an inheritance and marital assets like equity in the family home.
Your assets and liabilities can be summarized on the free Assets and Liabilities Spreadsheet that you can download as an Excel spreadsheet by clicking here or as a printable PDF by clicking here.
Tax returns for both you and your spouse for the last 3 years. If either of you are self employed, balance sheets and income and expense statements for the past 3 years would also be a good idea. Police reports if violence was an issue
When preparing for divorce and looking ahead to your own financial survival it is helpful to prepare a pre-divorce budget and a post divorce budget outlining your monthly income and expenses. This will help you get a clear picture of your needs and your standard of living both before and after the divorce. Have a Suggestion on How to Prepare for Divorce?Share it with others and help them avoid potential pitfalls.
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