Money is stressful. Divorce is stressful. Dealing with both of these factors can be incredibly taxing. If you’re in the middle of going through a divorce and need some financial advice, then we can help. As a family law firm, The Law Office Of Ronald Kossack has helped many couples reach a resolution that’s beneficial. Our divorce lawyers have worked with many partnerships in the Tempe, AZ, and the surrounding areas. One factor that a lot of people get very tense over is money. In a society where everything revolves around money, it’s no wonder that so many people become stressed when they don’t have enough of it. While we can’t solve your money woes, we can help you determine how to be more financially conscious as you’re going through a divorce.
Five Ways To Be Financially Conscious During Your Divorce
In today’s blog, we’ll be going over ways you can be financially conscious while getting divorced. Divorce is already hard enough without the added woes of money, especially if the reason that you’re getting divorced is over money. Finances are one of the top reasons that people get divorced because it can cause so much stress in an individual. To help you be more conscientious of what’s going on with your finances, we supplied five methods that will help keep you on the right track.
Talk To A Divorce Lawyer
The best place to start for any divorce is to talk to a divorce lawyer. Our divorce lawyers are very experienced and can help you create a plan that works for you economically, personally, and mentally. A divorce lawyer will go over your options as well as your rights. We will work with you to understand the worst case scenario and how to avoid an emotionally volatile process between you and your ex-spouse. Additionally, we’ll go over how to keep possession of valuable information such as personal information. While you know your ex-spouse the best, divorce can create bitterness and that can cloud many people’s judgment.
The Bank Accounts
You probably have a joint bank account, which you’ll need to close and monitor to ensure your spouse doesn’t withdraw all of the money or spend all of it because they are consumed by bitterness. Additionally, you’ll want to open up your own bank account to keep your money where you can control it. With a joint bank account, your ex-spouse has as much access to it as you do. They could create debt, run up the credit cards, and freeze your assets. A shared joint account, while great when you’re married, can be the cause of a lot of stress during a divorce. The best way to feel more in control of your money is to have a bank account in your name that is totally in your control. Furthermore, when you open a separate bank account before you get divorced, you could increase your credit.
Document Where All Money Is Going
If you hold the purse strings pretty tight, then chances are you know where a majority of your money is going. However, do you know where the money your ex-spouse is spending is going? Can you account for every penny and where it’s going? While you’re going through a divorce — and in general — you’ll want to document where all of your money is being spent. It’s best to do this because you’ll want to track everything to ensure your future.
You’ll want to write down the accounts, the assets, and all of the other little details. Writing down the balance, date, and what each account holds — joint and personal — will help you keep track of what to expect for your future. Don’t forget to keep track of jewelry, homes, furniture, vehicles, and insurance policies, all of which can easily slip through the cracks. Documenting where your money goes and tracking it can be one of the most beneficial things you can do.
Update The Will
Another method to be financially conscious is to update your will. A will is a legal document that is very powerful and takes precedence if there’s ever a conflict. It’s a small thing to do, but by updating your will and your beneficiaries, you’ll be able to have power over what happens when you are deceased. Your will details things like who will be getting your life insurance, stocks, retirement account, or what’s left in your bank account. Generally, the spouse will inherit a majority of the assets, which is why it’s in your best interest to change the will so you can dictate where your assets will go when you die.
Create A Budget
Lastly, and a great piece of advice in general, create a budget. A budget will help you plan for the future and have a financial plan in place to ensure you’re comfortable. A budget will establish what you need to spend money on after the divorce is finalized. If you have kids, you’ll want to factor in all of those expenses as well. If the divorce settlement includes alimony, property sales, and pensions, then you’ll want to add those in the budget as well. A budget helps to keep you on track for a future that’s ideal.
The Law Office Of Ronald Kossack has worked with many couples who are going through a divorce. We have the experience, reliability, and the motivation to help you reach an outcome that’s best for you and your family. For more information on divorce and how our divorce lawyers can help you, contact us.