One of the really difficult parts of divorce is sorting out your family’s finances.I’m not going to pretend that this isn’t overwhelming to most women who are divorcing. It can be time-consuming, demoralizing, and mentally challenging.
But it is so important to get your arms around your money, because if you don’t, you are at risk of being taken advantage of by your husband when you’re trying to negotiate a settlement. Knowledge is power, so you need to know as much as you can about your family’s finances before you agree to anything in the divorce.
Where are you going to start?
The first place I tell my clients to start is by gathering documents. This task in and of itself can feel overwhelming. How do you even know what documents you need? There are all sorts of financial documents people talk about, but which ones are important for your divorce?
If you are feeling like you do not even know where to begin, you’re not alone. This is why I’ve created so many resources with the Divorce Money Guide. One of the key starting points is the Divorce Financial Checklist, a list of nearly 40 financial documents that might be important as you prepare for your divorce and get into the financial details. You don’t necessarily have all of these documents in your possession, and you might not need them for your divorce. But I want you to know about them so that you can at least consider whether they might be important to your divorce.
Gathering these documents is not just about completing a process required by the divorce court. It’s also about protecting yourself financially. These items can give you important information about your finances as you’re negotiating a settlement and planning your financial future.
Here are just a few of the financial documents you should think about getting:
- Bank Statements – This is an important starting point. It is vital to understand the money that has been going into and coming out of your bank account. If your name is on an account, you have a right to look at the account and have copies of all statements.
- Retirement plan documents and statements – In most divorces, unless there is a pre- or post-nuptial agreement in place, a starting point for the division of retirement accounts is a 50/50 split. But you might be entitled to even more than half, especially if you took time off work for the benefit of the family or you’re unable to work and save for retirement. You need to know how much is in these accounts.
- Inventory of bills – Creating a list of all household bills is an important area to evaluate how your family is currently spending money, what you can anticipate spending in the future, and how to plan your post-divorce budget. In addition to our documents checklist, the full Divorce Money Guide has tools to help you with budgeting strategies to help move your life forward.
- Loan documents – You should get loan document for your home mortgage, auto loan, and other personal loans. Understanding your family’s debt is another important step to evaluating your options and making decisions about your future.
While this list of 4 items is a great starting point, there is a reason I have put almost 40 items in our Divorce Money Guide checklist. I wanted this list to be the ultimate, comprehensive list to get you through your divorce.
Without a more complete list, you may not get the best settlement in the divorce. You deserve all of the information to set your future life up. Let me help you make the most of your future today. Get the Divorce Financial Checklist to start making sure you don’t leave money on the table in your divorce.
