Let’s Talk Today | 724-704-0554

Douglas, Joseph & Olson Attorneys at Law

Attorneys Who Understand Their Clients

Preparing financially to divorce your spouse

On Behalf of | Oct 24, 2024 | Family Law |

If you have decided that it is time for you and your spouse to go your separate ways, it is time to get prepared for the divorce process itself. If you don’t think ahead, you’ll likely be more stressed – and less well-off financially – than you would otherwise be. 

Thankfully, preparation for the financial side of your divorce starts with a relatively straightforward task: gathering financial information. Once you accomplish this task, you’ll hopefully gain momentum that will help you to successfully navigate the rest of your preparedness tasks more confidently. 

Gathering financial information

First, you’ll want to gather all relevant financial documents. Bank statements, tax returns, retirement account information, loan documents, credit card statements and any other records that will help you to get an accurate picture of your financial situation should be prioritized. Why? Having a complete picture of your assets, debts, income and expenses will help you and your legal team evaluate how best to divide assets fairly during your divorce proceedings.

It’s also important to gather information about your spouse’s financial situation. If you don’t have access to certain accounts or documents, it may be necessary to request them during the discovery phase of your divorce. Organizing this information early will help streamline the legal process and provide a clear understanding of your marital estate. It will also help your legal team to better discern if your spouse might be hiding assets from you in one way or another. 

Opening individual accounts

If you and your spouse currently have joint bank accounts or credit cards, it’s a good idea to open individual accounts in your name. This will help you to establish new rhythms and get used to having accounts that must be managed by you alone. Be sure to inform your legal team before making any significant financial moves to avoid being accused of trying to hide assets or engaging in financial misconduct.

Dissipation occurs when one spouse intentionally wastes, depletes or transfers marital assets to prevent the other spouse from receiving their fair share of the marital estate. This could include actions such as excessive spending, gambling or making large purchases right before the divorce. To avoid accusations of dissipation, it’s important to be transparent and responsible with marital finances during the divorce process. Any unusual financial activity could raise red flags, so it’s best to maintain regular spending habits and keep thorough records of any transactions.

You’ll also want to make a budget, clarify how your anticipated property division arrangements will affect your finances and otherwise set your sights on the future. Taking these preparatory steps won’t be easy, but your future self will almost certainly thank you for your time and energy spent in this way.