A Checklist for Preparing Financially for Divorce

As you approach a dissolution of your marriage, it’s essential to take stock of your finances — especially if you rely partially or entirely on your spouse’s income. Divorce often has significant economic ramifications, and taking proactive steps can safeguard your interests and foster stability during this challenging period. 

Here’s a guide to help you plan financially for divorce:

• Compile financial documents — Begin by gathering such records as tax returns from the past three years, statements from bank and investment accounts, credit card statements, mortgage documents, retirement account details, pay stubs, insurance policies, and titles for any real estate and vehicles you own. These documents are critical for assessing your financial standing and in determining your eligibility for spousal maintenance (alimony) both during and after the divorce proceedings.

• Open personal accounts — If you don’t already have them, now is the time to open bank and credit card accounts in your own name. This step is vital for establishing your own credit history and ensuring you have access to funds that your spouse cannot control or deplete.

• Create a budget — Assess your current and future expenses and weigh them against your income. Crafting a detailed budget will help you pinpoint areas where you might need to reduce spending and identify financial needs that may arise post-divorce.

• Review your credit report — Request your credit report from the three major credit bureaus — Equifax, Experian, and TransUnion. It’s important to check for any joint accounts or shared debts and keep an eye on your credit score throughout the divorce process to avoid any unforeseen issues.

• Ensure access to liquid assets — Try to set aside funds for emergencies if possible. While it’s important not to conceal or improperly withdraw shared marital assets, having a reasonable amount reserved for living expenses and legal fees is advisable, particularly if you expect financial disputes with your spouse.

• Document your valuables — Make sure you have ownership records of all valuable items you own, including jewelry, artwork, collectibles and family heirlooms. Taking photos or creating a detailed list of these items can be crucial, especially if any property goes missing during the divorce proceedings.

In many cases, temporary spousal maintenance may be available. This form of support aims to preserve the lower-earning spouse’s standard of living until the final divorce decree is issued. An experienced divorce attorney can advise you of your rights and assist in pursuing such financial support.

The Law Offices of Randy S. Margulis in Williamsville and downtown Buffalo provides advice to Western New York residents in all aspects of divorce, including the financial issues involved. Please call 716-886-9600 or contact us online to schedule a consultation.