A divorce takes a toll on people in a number of ways. The financial considerations are large and involve much more than the cost of the court proceedings.
A smart strategy for finances both during and after the divorce can help people better survive the trials of a divorce.
Smart financial steps during divorce
An article in the Dallas Morning News suggests a number of ways to prepare for a divorce on the financial front. Documentation of expenses and income helps to argue for fair and equitable division of assets and debts. It could also play a role in the decision to award spousal or child support. Documentation of financial resources involves the following types of paperwork:
- Checking and savings accounts
- Retirement accounts
- Investment records
- Pay stubs
- Loan information
Since divorce is often adversarial, spouses should understand the need at times to gather financial information ahead of time. A spouse should also prepare to use court-ordered options for financial disclosure.
Financial steps after a divorce
Once a divorce settlement becomes final, financial actions remain critical for many people. A US News article recommends recently divorced individuals take a look at important documents that could need updating. One obvious action for many females is the importance of a name change. This usually requires the changing of many documents such as driver’s license, employee ID, credit cards and others. Beneficiary information often requires changes, too.
Though a divorce settlement is legally binding, that does not mean that everything will go as planned. Spouses do not always make the payments they agreed to. Therefore, it may be necessary to monitor the provisions of the divorce settlement and go back into court to seek enforcement of payments and obligations.