Divorce can be a very stressful and confusing time. Being organized and gathering the information needed to make educated decisions is critical. This transition can also be financially challenging, requiring preparation for the necessary budget adjustments. Gather Important Records When contemplating or beginning a divorce process, one of your most important tasks is to gather the records and documents that will help develop a complete picture of your family’s financial situation. In order for you to make solid long-term decisions about the distribution of assets, the payment of debts and management of the family’s cash flow, it is critical to have comprehensive, accurate and current information. What Records Will I Need?
Although each family’s situation is unique, here are some of the more common records that should be accumulated:
What About Personal Papers? In addition to financial documents, you should locate and secure in a safe place these important personal papers:
Get Your Budget in Order Separating or divorcing families almost always experience significant financial strain as they restructure into two separate households. Lifestyles of intact families are usually premised on a single household, often with two incomes. The addition of extra expenses for a second residence can uncomfortably stretch the family’s resources. How Can I Prepare For The Financial Transition? Here are some ways to prepare for this transitional period:
Summary Separation and divorce can be a scary time emotionally. It can also be a very financially challenging lifestyle change. Preparation and thoughtful budgeting can ease the transition. It is also important to seek legal advice as early as possible to avoid costly mistakes and to help you to plan most effectively for this huge change in your life.
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