Yes, it is crucial to plan for financial separation if you are considering a divorce. All financial assets and liabilities will need to be divided. Support for the custodial parent of your children should also be accounted for.
You’ll need to spend some time assembling an inventory of your financial situation so you can effectively plan for payment of debts and division of assets.
- List all debts accumulated during the marriage, joint or separate, and plan for their payment. This will include mortgages, credit cards, auto loans, and other liabilities. It’s best to pay any joint debts before divorce if possible.
- List all assets, joint and separate.
- Home or other real estate
- Value of investments
- Valuables such as antiques, jewelry, furnishings, luxury items, etc
- Balance in all bank accounts
- Locate the past few years’ tax returns.
- Find the exact amount of income for each spouse.
- Track down records for life insurance, health, pension, and retirement benefits.
Outlining the full financial situation gives you a better starting point to plan for the division of these debts and assets.