Irreconcilable differences in your marriage can make the future seem pretty bleak. In anticipation of divorce, you might wonder if there are things you can do to prepare and secure your financial stability.
Taking a proactive approach to planning can help you know where you stand, which assets you can rightfully claim and what steps you should take to minimize financial loss.
Organize and document
Organize usernames and passwords. Know how to access every financial account. According to U.S. News, prior to divorce, learn how much money you have. This includes the values of joint bank accounts, investment portfolios, retirement benefits and any other monetary assets.
Document everything you have. Print out statements to show the current standing of joint accounts so you can have proof if your spouse tries to conceal assets.
Budget and conserve
Immediately begin budgeting as though you live independently from your spouse. Take a conservative approach to spending. Eliminate elaborate purchases. Look for ways to cut back on your expenses. Some examples include making more meals at home, suspending fringe cosmetic treatments and spending less on gifts for family and friends.
You might consider getting a part-time job to boost your finances and give you some funds to save. Even if you cannot contribute a significant amount to a savings account right now, your consistency over time can make a considerable difference in your ability to rebuild your finances post-divorce.
Even though divorce often gets a bad rap for ruining a person’s finances, you can mitigate some of its repercussions when you plan ahead.