Top 3 Financial Pre-Divorce Strategies
Donald Morris, CDFA®
August 4, 2020
Divorce can take over your life for a few months or sometimes a year or two. Even the most well-organized person can be thrown off balance. Your life is about to significantly change. The more you plan and think about in advance, the better!
“Start thinking about what the next phase of your life looks like.”
1. Determine What You Know And What You Don’t Know
When it comes to the family finances, what’s your role? Do you handle the bill paying? Are you “in the loop” on all your investment accounts, retirement plans, bank accounts? If you’re in the dark, you need someone to help you turn the lights on – and fast! If you and your spouse are cooperative, ask for statements on all your asset accounts and your most recent tax returns so you can find a CDFA® to help you organize. A CDFA® is specially trained in the financial aspects of divorce and will be your best financial friend in this process.
2. Plan For Your Future
This is hard at first, but start thinking about what the next phase of your life looks like. Unfortunately, this has to happen at the same time that you are grieving what you thought the next phase was going to look like. But if you allow yourself some space, it can actually be fun. You now have the chance to start over. Have you thought about what life will look like? Is it time to go back to school? Will you continue to live in the marital residence, or do you need to move? Our process is to look at your current expenses and then create your new budget.
3. Establish Yourself Financially
Often through marriage all the credit cards, mortgages, loans, etc. are in the names of both spouses. All of those accounts will have to be closed or converted. After the marriage is over, your credit picture may not be nearly as strong, so you want to be sure to put some things in place while you’re still married. Immediately open a checking and savings account in your own name to begin the process of establishing your own financial identity. Next, find a good rewards credit card to apply for in your name alone so that you will be assured of having access to credit post divorce and maybe even during if legal fees are necessary.
These steps seem small but are valuable first steps to get you thinking financially and planning for your future.
Disclaimer: This information, developed by an independent third party, has been obtained from sources considered to be reliable. Columbus Divorce Advisors does not guarantee that the foregoing material is accurate or complete.
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Columbus Divorce Advisors
Affordable financial analysis, mediation, and facilitation for your amicable divorce. Don Morris and Columbus Divorce Advisors, is dedicated to saving you money, reducing stress and keeping you out of court during your divorce settlement process and post-divorce.
Don Morris is NOT AN ATTORNEY AND DOES NOT PROVIDE LEGAL ADVICE. All information he provides should not be construed or relied upon as legal or tax advice. Individuals seeking legal or tax advice should solicit the counsel of competent legal or tax professionals knowledgeable about the divorce laws in their own geographical areas