Divorce is an emotional process. It brings a lot of stress that can affect your decision-making. We specialize in offering financial guidance and planning for women in transition, whether that’s through the death of a spouse or working through a divorce.
We put together a checklist of financial tasks to cover to maintain your emotional and financial well-being when going through a divorce.
Covering the financial basics
Start with the information you need to ensure the fair division of assets. This includes gathering:
- Social Security numbers
- Bank and investment account information
- Income and expense records
- Insurance policies
- Employee benefits
- Credit reports
Gathering the appropriate documents to sort through is an important first step. Another critical first step is hiring a certified public accountant (CPA) to advise on the tax implications of separating assets and transitioning from a married couple to a single taxpayer.
Decide on the primary residence
One of the biggest issues to tackle is what to do about shared properties such as a home. In many instances, one partner wants to keep the house they live in. This requires getting the title and mortgage in a single owner’s name, and there may be compensation needed for the other party if the one individual wants to stay in the home. Additionally, some couples decide to sell their home before the divorce is final because of the tax implications. Your tax accountant and divorce attorney can help you make the decision that is best for you.
Looking toward the future
While a lot of divorce proceedings are focused on the here and now, it’s always a good idea to keep an eye on your future and what that looks like.
Long-term investments and retirement planning can help offer you the financial stability that you need. Retirement assets divided by a Qualified Domestic Relations Order should not be subject to tax.
Additionally, if children are involved, you want to ensure they are set up for their futures as well with college planning. Decide how college accounts are funded and have that account information.
Take your time
Divorce is difficult, so it is common for people to want to rush through to just be done with it. But you want to ensure that assets are being divided fairly and you are getting the support you need to begin a new chapter of your life. Take your time through the settlement so that you have a clear picture of what your financial future looks like.
As a single earner, there is a pull between the desire to be present with your family and the struggle of preserving and providing resources for the future. We come alongside you as a partner to guide you through the financial decision-making and to provide the accountability to stay the course for the long term. If you’re going through a divorce, contact us for financial guidance.