There is really nothing easy about coming to the conclusion that your marriage is ending and it is time to seek a divorce. As you approach this event, however, it is important to take a step back and think about how it is going to impact your finances during and after the divorce process. Many people don’t realize it, but divorce is one of the top causes of bankruptcy, which is why it is so critical to start preparing financially for your divorce now.
Gather All Documentation
Your attorney and the judge in your divorce will need all the documents for all your financial accounts, assets, and debts in order to properly handle the case. Taking the time now to gather everything together will not only ensure you have it available when it is needed, but it will also help you get a better picture of your financial situation. As you find each document, take a moment to review it so you have a good understanding of all your finances.
Begin Closely Tracking Spending
While it is always a good idea to track your spending, it is absolutely critical now. As soon as you begin even thinking about a divorce, you will want to make sure you know exactly how much money is coming into the home and how every dollar is being spent (or saved). This is important for creating a budget, planning a budget for after the divorce, and perhaps most importantly, making sure your spouse isn’t hiding any money or assets from you before the divorce begins.
Avoid Major Purchases
Now is not the time to be making a big purchase. Many people are tempted to get away on big vacations, buy a fancy car, or splurge in some other way, but that is a mistake. Not only is it more important to have as much cash on hand as possible at this time, the judge may very well award those purchases to your spouse in the divorce anyway. Even if they don’t, the judge may look negatively if you are spending carelessly in the weeks and months leading up to a divorce.
Build Up Savings
A divorce is often more expensive than people expect. There are the normal legal fees and court costs, which can be planned for, but that is just the beginning. As you begin to separate, you will essentially be doubling all of your household expenses. Then there is also the potential for child support and spousal support that needs to be handled. As you are preparing for a divorce, make sure you are putting as much money as possible into a savings account to cover the costs of a divorce. With proper planning now, you can get through this difficult time, and emerge on the other side on strong financial footing.
If you are considering divorce, contact Attorney John M. Totten today. Our office has been helping Alabama families with their legal needs for several years, and we can work with you to plot the best course of action for your situation. Call (256) 233-2025 to schedule a consultation.
- The Legal Implications Of Paternity In Alabama - April 3, 2024
- Workplace Injuries: Workers’ Compensation vs. Personal Injury Claims - April 3, 2024
- Can I Remain Silent At A Traffic Stop? - March 11, 2024
