6 Tips on Preparing Yourself Financially for Divorce

Tuesday, February 19, 2013

6 Tips on Preparing Yourself Financially for Divorce



When you see a divorce is coming, it's time for a business gut check. Get control of your finances. If you don't, lawyers, judges, and your ex-spouse may make it for you. Here are a few financial tips to prepare for divorce and the consequences.
 1. Do a Financial Inventory
You need to know just what assets and liabilities you have. Tally up everything you owe. Include accounts that are currently in your spouse's name. Count credit cards, leases on vehicles and your outstanding mortgage balance. Add up the cost of your possessions. This includes cash accounts, value on your house, collectibles, vehicles that have been paid for, business interests, jewelry and any other items of value. This gives you a total of your net worth when you subtract liabilities from assets. You'll need this number to make sure you are treated fairly when it comes time to divide possessions.
 2. Find Storage Space
You are going to need a place to store things you want to carry out of the divorce proceedings. You don't have to keep your possessions a secret, but by putting them in storage, you keep them from harm and make it known that you consider these items your personal property. This will also be a good place to keep things you may need during the transition, such as extra clothes, toiletries and legal documents.
 3. Make an Income and Expenses Plan
You need to make sure you can pay the bills after the divorce. Subtract all expenses, including new items such as child support, from your income. This figure will help you make your case that you have limits on the amount of expenses you can pay.
 4. Make a Savings and Retirement Plan
It will encourage you up to prepare for your future. Plan to continue contributions to a retirement account if you have one, and to save money into an emergency pool after your divorce. This fund will keep you against unforeseen expenses.
 5. Open New Accounts for Yourself
Go to a brand new bank and open a checking and savings account in your name only. You will need this account immediately after the divorce to pay your bills and drop your income.
 6. Protect Your Credit Rating
Make a way to continue paying on any debts that support your name and your spouse's name on them. Don't ruin your credit while you consult with your spouse. Keeping payments current will keep your credit healthy.
 Author Bio -
This article was written by Dixie Somers. She works for extraspace.com. They offer Lilburn GA storage units.

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