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How can I Prepare Financially for Divorce?

On behalf of Gregory W. Stevens, Attorney at Law posted in blog on Thursday, June 22, 2017.

When it comes to divorce, not many people in Utah think about their financial situations before filing. Many of them go through the divorce process with unrealistic expectations about the outcome. Some people make false and contentious claims because they think their judges will believe them and base their divorce settlements on sympathy. Little do they realize that real life divorce situations rarely play out that way.

To avoid suffering a major financial setback after finalizing everything, you should consider the following suggestions to help you prepare financially for your divorce.

Gather Financial Records

One requirement of divorce is for you and your spouse to gather your financial records and provide the courts with full disclosure. You should make copies of all joint and individual financial statements and documents and include a detailed list of assets. Even if your separation is on pleasant terms, you should do your best to uncover all assets, even those that your spouse may be hiding.

Pay off Joint Accounts

Joint debts and accounts that you and your former spouse have do not become separate once you divorce. You are still liable for any joint debts and financial obligations that you have. Pay off joint debts to avoid the negative consequences that can occur if your partner does not pay them. While you are getting rid of joint accounts, you should open your own accounts.

Create a Post-Divorce Budget

Because your financial situation is going to change, you should establish a budget that reflects the standard of living you want to maintain. Document all sources of income and expenses. Start tracking your monthly expenditures and making adjustments where necessary to ensure that you can comfortably afford your new life. You should also try to save some money each month for emergencies and unexpected expenses.

When planned out in advance, you can keep your divorce expenses down and improve your financial situation. Because there are many factors that can affect the outcome of your divorce settlement, you may want to speak with an attorney for guidance.