EP 73: Are you prepared for divorce?

Episode 73 of the Divorce and Your Money Show discusses how to know if you are prepared for divorce.

divorce-financial-preparing

If you are in the early stages of a divorce, you are undertaking a huge transition in your life. There are 4 clarifying questions, which can help you be prepared as you begin the proceedings. Each of these questions is personal and should be viewed as a way to prepare for the process.

The first question is: Can you save your marriage? This question is a very personal one. Divorce can have major effects throughout the rest of your financial life. Before proceeding, it is good to pause and make sure you have tried to save the marriage through other means.

The second question is: Do you have your own bank and credit accounts? As you begin your own financial life, you need accounts set up in your own name. During a divorce, joint assets have a tendency to disappear. Protect yourself, and set up your own monetary accounts.

The third question is: Have you checked your credit report? Figure out all of the accounts that have your name on them. If your name is on a debt, it is your responsibility. Get your credit report, and check it for accuracy. Then you can make sure there are no surprises early in the process.

Finally: How are you going to pay for your divorce? If you have an amicable divorce, your costs might only be $1,000. However, if it is a contentious divorce, the costs can range from $10,000 to $100,000. Have a plan for how you are going to pay for the divorce. Do you need a loan? Do you need to sell some assets?

Key Learning Points

  • Below are 4 questions to help you prepare for divorce:
  • Can you save your marriage? Divorce is a huge undertaking; make sure you have exhausted all other means first.
  • Do you have your own money? Joint money tends to disappear, and you need your own funds and accounts.
  • Have you checked your credit report? Get your credit report early, so you can check for any irregularities or surprises.
  • How are you going to pay for your divorce? Divorce is expensive. Have a plan for how you are going to pay for it.

Conclusion

Thank you for listening to the Divorce and Your Money Show. We hope the show helps you through one of the most difficult periods of your life. Shawn Leamon is also the author of Divorce and Your Money: The No-Nonsense Guide. One-on-one divorce-coaching services are available at www.divorceandyourmoney.com.

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Shawn Leamon, MBA, CDFA

Dallas, Texas

Shawn C. H. Leamon is Managing Partner of LaGrande Global, a firm that helps successful families manage large financial transitions like divorce, inheritance and selling a business.

He earned his Bachelor of Arts from Dartmouth College, double majoring in Economics and Philosophy, and his Masters in Business Administration at Spain’s IE Business School.

Before founding LaGrande Global, Shawn helped manage $1.1 billion in client assets at Bernstein Global Wealth Management. He also worked as a credit research analyst at J.P. Morgan. He is a Certified Divorce Financial Analyst, and he has been an advisor to numerous high-stakes divorce cases.

Shawn is the author of two well-received finance books: Managing Private Wealth: Principles, and Divorce and Your Money: The No-Nonsense Guide, both published in 2016.

In his spare time, Shawn is an ultra-endurance athlete and has competed in events as long as 24 hours. He is an Eagle Scout and a member of the Alumni Board of Greenhill School.