Financial Reality; Ignorance is Not Bliss

Why is understanding your financial situation so important especially when going through a divorce?

When going through a divorce, it is crucial to have a clear understanding of your financial situation. Here are a few tips if you are preparing for or are currently in the midst of a divorce.

Take the time to gather all relevant financial documents, including bank statements, tax returns, investment accounts, and retirement savings. Understanding your assets, debts, and expenses will help you make informed decisions during the divorce process. You will need all of this information to share with your attorney/mediator and your spouse during the process of discovery.

Assets can have a way of “disappearing” during a divorce and the more information that you have about your household finances the better. Some of the less common items to consider are any employer stock plans, business assets, cash value life insurance, employer funded incentive plans such as banked sick days or vacation days and digital assets.

Creating a budget and reviewing your current debts are also key to having a clear picture of your finances. Many people don’t really know how much money their household needs to run monthly. I find that many clients are surprised once they start putting the bills and debts into a financial document. This information will be needed for dividing debt and it is also important for you to see where your money is going. Once the divorce is over you will need your own budget with just your income and expenses.

Consider working with a financial planner who specializes in divorce to help you navigate the complexities of dividing marital assets, creating a post-divorce budget, and planning for your financial future. We can help you organize your financial documents and create reports that will provide clarity and confidence in your divorce case.

Having a comprehensive understanding of your financial situation will empower you to make sound decisions and secure your financial stability as you move forward.

Beyond Divorce Solutions offers financial planning and analysis for those going through a divorce. Reach out if we can help!