Navigating the Financial Landscape of Divorce
For most people, getting a divorce marks a significant life step. Even if you might be prepared to end your marriage, you should consider the financial implications of your decision.
After your divorce, you will have to make all financial decisions for your single-income home. Here are some financial readiness recommendations to assist you in getting ready for this.
This article aims to provide you all the knowledge regarding the smart financial decisions that you have to make before filing for the divorce.
Understanding Your Financial Standing
Divorce can absolutely ruin your financial condition if you do not have strategies to tackle it. That is why it is necessary to have clarity about the post-divorce scenario. You can always seek the guidance of your divorce attorney in Fife, Lakewood, Puyallup, Dupont, Tacoma, and Sumner.
With Kevin G. Byrd.
Collect all the Financial Records
You should always think of approaching a bankruptcy lawyer in Lakewood for help if you have neglected to make financial decisions for a long time. You must collect all documentation pertaining to your financial status, including bank statements, tax returns, retirement account details, investment information, mortgage statements, and anything else. A thorough understanding of your financial status before filing for divorce will help you guarantee a just settlement.
Record Every Expense You Incur.
You must be aware of your spending. After gathering your credit card bills and receipts for the last three months, take some time to categorize your expenditures. When pursuing a divorce, it is crucial to understand your necessities for survival.
Ensure that you possess a bank account of your own. Selecting a bank other than the one where your joint accounts are kept could be a prudent decision. (But don’t empty your current accounts without first getting legal advice. That might cause you problems in the future.)
Getting Ready for a Divorce
Divorce is difficult, even in the most favorable circumstances. It’s a process to start planning for life after divorce, and you should consider it sometimes, even before you file. It will pay off to know your legal choices. Our divorce lawyer in Tacoma, can help you out with understanding the entire process of filing a divorce case and the further steps that are needed to be followed.
Keep Track of Who is in Possession of What.
Make a list of the assets and obligations that you and your spouse own before proceeding. On the mortgage, whose name appears? How about the vehicle? Think beyond the box in this instance. Retirement plans, insurance coverage, and even furnishings and jewelry are other things to consider.
Make a list of everything you and your partner own first. Next, compile records that indicate the worth of each asset, who is authorized to own and use it, and any pertinent account numbers. Be kind to yourself; this can be a difficult procedure during an already trying moment. To avoid becoming overwhelmed and exhausted, divide this up into smaller parts and get started early.
Create a Budget After the Split.
Being ready for life after divorce is an often-overlooked aspect of divorce preparation. Assuming that your level of living will alter significantly after the divorce papers are signed is a difficult thought to consider.
Think about potential living situations, the expenses you may incur, and whether your retirement and savings plans will need to be modified. Don’t forget to factor in the expense of the actual divorce. After you have those numbers, decide whether you need to reduce your expenses or look for other sources of income.
Seeking out individual financial education is also a great idea at this time. To reduce stress later on, learn money management skills now. In case you’re looking for a military divorce attorney in Dupont, Fife, Puyallup, Sumner, or Tacoma- feel free to reach out to our law office for representation.
Create Fresh Bank Accounts.
But opening your own checking and savings accounts should be at the top of your list of things to do. Your money needs to be kept in a safe place that is all yours. Update your direct deposit and autopay details as soon as you have your new account and routing numbers to prevent late fees or problems with paychecks.
But be cautious about how you fund these accounts. Avoid giving the impression that you are concealing assets, as this could damage your reputation during the divorce process and is against the law.
Shut Down Shared Accounts.
Accordingly, you need to remove your spouse’s name from all of your accounts and vice versa. Even when you have total faith in your relationship, consider the dangers before giving them continuous access to your money. After a divorce, you will still be responsible for any joint debts.
You can easily take your spouse’s name off of an account if they are listed as an approved user. If you are listed as an authorized user on any account, ask them to undertake the same procedure. Should you both be identified as joint account holders, there may be further steps needed. It’s essential to get in touch with your financial institution in that situation so they can help you.
Refresh your List of Recipients.
Have you designated your spouse as the beneficiary of your retirement account, life insurance policy, or will? It’s time to fix that right now. Most of the time, you can amend your beneficiaries over the phone or online. However, some institutions need you to submit these changes in writing. In the event that you reside in a community property state, your spouse’s approval will probably also be required.
Consult a Qualified Financial Expert for Divorce.
Throughout a divorce, there are a lot of things to consider and prepare for, and it can quickly become too much to handle the financial effects of the divorce. Put your mental health first and make the divorce process easier by working with a financial planner, like a Certified Divorce Financial Analyst (CDFA). Kevin G. Byrd has the finest divorce lawyers in Fife, Tacoma, Puyallup, Dupont, Lakewood, and Sumner.
Conclusion: Empowering Yourself Financially for the Upcoming Chapter
Kevin G. Byrd, a family lawyer in Lakewood, specializes in divorce-related family law cases at our office. He can put up a valiant battle on behalf of his clients going through divorce since he is a professional and sympathetic advocate. Kevin G. Byrd can also help with a variety of issues impacting your family, as divorce is rarely an easy process.
Furthermore, in the event that you feel an unfavorable decision about a family law matter you were involved in was made, our attorney can assist you with the modification procedure. One of the top divorce attorneys in the field is Kevin G. Byrd, and you can trust him to help you with anything.
