The Guide to Protecting Your Money During Divorce

Reality Check: Finances are an obstacle for almost everyone. Did that hit home? Wouldn’t it be so much easier if money just grew on trees and we’d pick the money trees, fill our baskets, come back tomorrow and do it again? And then on top of an already touchy subject, during divorce the money obstacle gets HEATED. We don’t get married thinking one day we will get divorced (well, not most of us). There are so many unknowns when it comes to money during divorce, things you can and can’t do or you COULD do but it wouldn’t be wise…

Here’s the thing… During the process of divorce things can get painful and ugly.

• You probably don’t want to borrow money from family
• You may be concerned about spousal support
• There’s certain financial documents you’ll need just to get anywhere
• Your spouse might (likely will) try to hide things…

1. Understand Your Finances and Gather Documentation

• List Your Assets and Liabilities: Make a comprehensive list of all assets (e.g., bank accounts, retirement accounts, real estate, vehicles, valuable items) and liabilities (debts, loans, mortgages).
• Collect Financial Records: Gather documents such as bank statements, tax returns, investment account statements, mortgage documents, and insurance policies. This information will provide a full picture of your financial situation.
• Know Your Marital vs. Separate Property: Marital property (acquired during the marriage) is typically divided, while separate property (owned before marriage or acquired through inheritance) may not be.

2. Create a Budget and Adjust Your Lifestyle

• Assess Post-Divorce Income: If you’ll have reduced income, establish a new budget to reflect the change. Consider costs like legal fees, moving expenses, and alimony or child support.
• Reduce Non-Essential Spending: Avoid unnecessary purchases and try to save where possible to ensure financial stability during the divorce process.

3. Consult with a Financial Advisor and Attorney

• Hire a Financial Advisor: They can assess the potential financial impact of the divorce and help create a strategy to protect your assets.
• Seek Legal Advice Early: An attorney specializing in family law will guide you on protecting your assets and avoiding costly mistakes.

Don’t just assume you and your attorney will sort out everything you need for your finances during divorce either. In fact, 9 out of 10 times you will miss an important question or document with your attorney. That’s why Tracy Coenen is my go to Forensic Accountant to help ANYONE going through the divorce process.

Do you feel helpless and trapped by your finances? Are you wondering if you will have enough money to live on your own after the divorce? How can you prove that the feeling in your gut is correct…. that money has, in fact, been hidden from you? How do you avoid wasting all of the money you have saved just to get through the divorce?

“I’m Ready!!!” Learn More Today