Episode 73 of the Divorce and Your Money Show discusses how to know if you are prepared for divorce.
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.
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.
If you enjoyed the show, please take a moment to leave a review on iTunes, as it will help other people discover this free advice.