Divorce is not an easy process to go through. It can be emotionally draining, and figuring out how to start separating your life from your spouse’s can be a daunting task. However, many people have found that getting organized from the get-go is a good way to stay on track and make sure you are prepared for what lies ahead. A recent article in CNBC offers a few tips on how to do this.
Being prepared for divorce means understanding your entire financial picture. A good place to start is with your income. How much do you make from your job? What about any investments you have? Understanding your total income is important for determining alimony and child support.
Once you’ve figured out your income, you should next consider your expenses. Look carefully at your bank and credit card statements to understand how much you spend. Then, figure out how much you spend on things you need as well as things you want. Separating the two will give you a realistic picture of what to expect from life after divorce.
Finally, you’ll need to understand your assets as well as your debts. Your debts should include your mortgage, credit card debt, student loans and other liabilities. Your assets should encompass everything from your bank account to your retirement accounts to your personal belongings.
As you may have figured out by now, understanding your overall financial picture is not always an easy thing to do. Taking the time to do it, however, will give you a leg up during divorce. When facing this overwhelming task, it is important to know that you do not have to figure everything out on your own. Many people in Brooklyn find that working with a family law attorney is a good way to ensure they have the guidance they need to complete this process.
Source: CNBC, “Getting divorced? Get organized first,” Valerie Adelman, March 9, 2014