Written By: Brandy Miller | September 15, 2016 | No Comments

Divorce has an immediate and significant financial impact on both parties in the relationship. During the course of the marriage, a couple’s financial lives become intertwined. You generally file taxes together, name each other as beneficiaries on your accounts, have joint checking accounts, have bills to pay and so forth. You may have been planning on a long life together and may even have common retirement plans.

During a divorce, you will need to protect your finances to ensure your future remains positive. You will need to:

  1. Get legal and financial support.
    The factors affecting your finances before, during and after divorce are complex. Speak with an attorney to guide you through divorce and to ensure you get the proper spousal support, alimony and other support you will need. An attorney can also help both you and your former partner plan for finances long-term or can recommend financial planners to help you make financial changes.
  2. Make a list of all your financial obligations, assets, accounts and liabilities.
    Make a list of all your financial realities, including:
    • Bills you pay
    • Any policies where your spouse may be a beneficiary
    • Retirement Accounts
    • Investments
    • Assets
    • Financial Accounts
    • Debts
    • Liabilities
    • Insurance Policies
    • Credit Cards and Loans
    • Regular Expenses
  3. Start separating your finances.
    Once you have a list of all of your financial accounts, debts and assets, work on separating everything. Set up your own bank accounts and update insurance companies, employers, credit card companies and everyone else about your situation. You may need to have yourself removed from some bills, loans and other instruments. You may need to find a new place to live. An attorney can help with separating yourself financially from your spouse.
  4. Consider the long-term implications of your divorce.
    Your divorce may affect retirement plans, how you file taxes and more. Talk to both your accountant and your attorney about how your taxes will be affected and how you can continue to plan for retirement to ensure you have the future you deserve.
  5. Create a budget.
    Create a monthly budget, listing all of your needs, bills and other expenses. Keeping a budget is important once you transition to having one income. It will allow you to see how much money you need to pay your bills and will allow you to plan long-term for your financial health. You may realize you need to reduce expenses, or you may need to prioritize savings or other elements of your budget to live comfortably.
  6. Keep all financial records.
    Keep receipts of everything. You never know when it will be important to prove your expenses, bills and other costs in court. Your expenses may play a role in any alimony or child support awarded, so make sure you keep careful financial records both for divorce court and for taxes.
    The financial impact of a divorce can be long reaching. The attorneys at Miller Law Group would like to help by offering you support during every stage of your divorce. Our offices in Reading, Pennsylvania, serve clients from Berks County and we’d be happy to speak to you about your concerns. Our commitment to caring and sensitive legal support as well as strong representation may be the type of family law assistance you need. Contact us today for a consultation.

Sources

CheatSheet.com

Investopedia.com