Preparing Finances for a Divorce in the New Year

The end of a year, or early in the next year is a common time for divorce, or for couples to consider divorce. Making it through the holiday season and starting anew in January are what make the time so popular for filing. Though you might decide to begin the divorce process early in the year, there are a few things to consider before you jump in.

What You Have and What You Owe

Finances can sometimes make a divorce complicated, even when you and your spouse want to keep it simple. Start by making lists of what money and other funds you have. Understanding what clearly belongs to you and what belongs to your spouse is important, but it may not always be clear in the beginning. In fact, your attorneys and the court may have to help you divide these things. Also, make sure you know what’s yours and what belongs to your spouse. Make a list of any debts. Run your credit reports, and if there are any joint accounts with debts, you will want to establish what debts belong to whom.

These lists should include property and important items, like vehicles, expensive goods, and more. When you compile these lists, make sure to assess their values, how much you owe, if anything, and whether you consider them joint or separate property. Anything you owned prior to your marriage is usually your separate property, as is anything you were given as a gift, or as part of an inheritance. Anything else gotten during the marriage may be considered community property, but it is possible for you and your spouse to negotiate property division peacefully.

Important Documents

All these lists should be included with other important documents. As soon as you know you’re going to divorce, start collecting any documentation that may come in useful. In fact, go ahead and gather anything that may not seem as important—you never know what you may need.

The paperwork to gather may include, but is not limited to:

• Real Estate
• Loans
• Car Titles
• Estate and Power of Attorney
• Tax Returns
• Social Security
• Pay Stubs
• Investments
• And More

Organize all these documents so that you can find them easily, and direct your attorney to them with no trouble. Doing this well in advance could save you and your attorney headaches. It may also save you some time and money.

A New Budget

Divorce and your life afterward will impact many things, expenses being important ones. While you need to remain flexible because your finances will change in unexpected ways after a divorce, you can create a new budget based upon what you know. This will help you navigate through the divorce and its expenses, and be ready for your expenses afterward. It also helps to know what you can afford, should the issue of alimony come up. Remember to include the small things in your budget, too-utilities, food, personal items, etc.

Divorce in the new year, or at any time of the year is a difficult process. Preparing finances for a divorce may help make things easier. If you need help with finances, or any part of your divorce, call us at Miller Law.