Divorce is often cited as one of life’s most stressful events. Although the journey will never be entirely easy, thoughtful preplanning and careful preparation can certainly help lower the stress levels. Here’s what you need to know:
Know What You (Both) Own and Owe
What You Own:
- Inventory Your Assets: List everything from bank accounts, investment accounts, and retirement accounts to real estate, antiques, motor vehicles, collections, and anything else of real value.
- Don’t Sweat the Small Stuff: Everyday household goods and furniture usually have minimal value, unless they’re antiques.
- Details Matter: For each item, estimate its value, note when it was acquired, describe the funds used to acquire it (e.g., were the funds inherited, gifted, or owned before marriage), and determine if there is money owed against it.
- Do It Early: Inventory your assets before you separate, and make copies of all relevant documentation.
What You Owe:
- Check Your Credit Report: You might discover debts you didn’t know about.
- List Your Debts: Include the current balance, purpose of the debt, monthly payment, and when the debt was incurred.
- Include Student Loans: Even those incurred by your spouse during marriage. They may be considered community debts.
Taxes, Papers, and Budgeting
Determine If Your Taxes Are Up to Date: This is vital if your spouse handled the taxes. Gather the last five years’ tax returns, and consult with an accountant if needed.
Keep Important Papers Accessible: Store copies of tax returns, mortgage documents, bank records, titles, deeds, and investment records somewhere safe outside your home, like a safety deposit box.
Put Aside Money for the Process: Divorce can be expensive, not just in legal fees, but court fees and possibly expert witness fees.
Make a Budget: Consider all your living expenses. Don’t get caught in an unfair settlement because you’re desperate for money.
Secure Your Digital Life, Change Beneficiary Designation, and Change Your Estate Documents
Change Your Passwords and Logins: This includes email, social media, phone lock screen, websites, and your computer. Backup your hard drive to ensure access to your documents if needed.
Change Your Beneficiary Designation: Accounts where your soon to be ex-spouse is designated as a beneficiary should be changed. Accounts include but are not limited to:
- Pensions
- Retirement accounts
- Life insurance policies
- Annuities
- And any other accounts or plans, such as savings/checking, stocks, bonds, CDS, mutual funds, etc.
Change Your Estate Documents:. If you have completed a Power of Attorney and designated your spouse as your attorney-in-fact or left property in your Last Will and Testament to your spouse then it might be wise to consult with your attorney about changing these designations.
Hire a Lawyer Early
Don’t wait until the last minute to consult a lawyer. Preplanning with a legal professional can help you understand property division, the divorce process, and the associated costs.
Don’t risk a disaster when ending your marriage. Instead, trust Taylor & McDowell Law to protect your interests. Our experienced family law lawyers can guide you through the divorce process as smoothly as possible. Call us at (985) 359-9100. We are here to help.
