Deciding to get a divorce can be one of the toughest decisions you will ever make in your life. Once you have made up your mind, it’s time to prepare financially for the process. This means collecting your financial data for analysis. This type of task can be intimidating and overwhelming. However, you probably do not know where to begin and what exactly to look for. Thankfully, a Montgomery divorce lawyer can help you prepare your finances by showing you the kind of information you need.
Being prepared for divorce can minimize your stress as you will not scramble to look for missing documents or face surprises from your spouse’s side. Your divorce is like a mystery that you need to solve. The more details your attorney has from the get-go, particularly about your finances, the better they can give you legal representation and secure the most favorable outcome in the case. This applies to matters beyond basic finances like spousal support and child custody, which can impact your bottom line later. During your divorce, understand how to organize your finances. Here are some tips that can guide you:
Keep Records of Current Income and Expenses
Your attorney must understand your income and expenses, no matter how small they are. Small expenses can accumulate over a year, particularly if you pay with cash. Thus, you also have to keep track of them. Document unexpected expenses like repairs. Any extra income from a second job or other sources must also be included.
Maintain Open Communication About Your Finances
While this can be hard, speaking respectfully to your spouse must become a habit. Although your spouse may not appreciate you keeping track of their expenses and questioning them, a negative response from you can make the situation worse.
Make an Organizational System
After you have collected a lot of documents, determine how to arrange them. Categorizing them allows for easy storage. As new statements come in, file them immediately to ensure you can easily retrieve them later when necessary. There is no need to have physical copies. You can keep computer files. Use cloud technology to back up statements, preventing them from being lost.
Avoid Making Big Purchases
Do not make huge purchases that deviate from what you usually spend. While you may want to splurge on expensive items, this can look bad to a family judge and anger your spouse. As a result, the family court might intervene, possibly leading to undesirable consequences.
Do Not Make Major Changes to Your Finances
Do not make substantial changes to your bank accounts or beneficiaries to financial accounts. Otherwise, this can make your spouse or the court think badly of you. Keep in mind that once the divorce process starts, you are under scrutiny. Thus, you should act honestly, regardless of what your spouse does.
That said, you should also address some estate planning issues like the party who must make medical decisions for you or who you want to inherit any separate property you when you die. Speak with an experienced attorney to understand the things that can and cannot be changed before the start of your divorce.
Anticipate the Cost of Your Life After Divorce
After a divorce, your life will look different from how it currently looks. Project what your life after divorce will look like and the amount it will cost to support this life. This way, your attorney can determine the divorce settlement to seek for you.
Your financial journey during the divorce can be filled with complications. A skilled divorce attorney can guide you through each step of the process, starting by answering any questions you may have in mind.
