Make a Checklist to Help You With Your Divorce
Divorce is not just an emotional rollercoaster—it’s a financial one, too. Amid the emotional upheaval of separating from a partner, the financial complexities can often feel overwhelming. Financial preparation is critical to navigating the divorce process with clarity and confidence, from dividing assets to understanding post-divorce expenses. This not only works to make sure you receive what you deserve, but so your spouse can’t successfully accuse you of hiding assets, which is considered perjury.
The divorce attorneys at C. Alvarez Law created this financial checklist for divorce. It can guide you step-by-step through each thing you should record and consider. This ensures that you and your former partner can approach asset division and future planning with minimal stress.
Every Financial Asset and Consequence to Consider for Divorce
1. Collect Bank Statements
Gather all bank statements from the past 6–12 months, including savings, checking, and joint accounts. Understanding where your money is and how it has been used is essential for financial clarity during this time.
2. Be Aware of Tax Consequences
Divorce can impact taxes significantly, from filing status changes to capital gains taxes when dividing investments or selling property. Consult a tax professional to understand the tax implications of separating your finances.
3. Check Your Credit
Pull your credit report to ensure awareness of all debts under your name. This step is crucial to avoid being blindsided by joint debts or unauthorized loans during or after the divorce process.
4. Address Pensions and Retirement Plans
Retirement accounts like 401(k)s, pensions, and IRAs are considered marital assets. You may need a Qualified Domestic Relations Order (QDRO) to legally divide these accounts.
5. Review and Update Wills
Update your will to reflect changes to beneficiaries and power of attorney appointments. Divorce doesn’t automatically revoke these documents, so it’s imperative to revise them promptly.
6. Assess Child Support Payments
If applicable, calculate child support payments and obtain clear legal agreements regarding custody and obligations. Use financial models to predict the costs of raising children post-divorce.
7. Gather All Financial Documents
Organize financial documents, including pay stubs, mortgage records, titles, and insurance policies. Courts require full disclosure of all finances during divorce proceedings.
8. Open Individual Accounts
Move your income into a newly opened, individual checking or savings account. This step is critical for ensuring separate control of your finances moving forward.
9. Property and Asset Division
List all marital property, including homes, vehicles, jewelry, and investments. Determine which assets are marital and which are personal to facilitate an equitable division under state law.
10. Review Past Tax Returns
Obtain your tax returns for the last three years. These will help determine your financial history as a couple and may be required during legal proceedings.
11. Update Your Budget
Divorce changes your financial landscape. Create a fresh budget to reflect your new income, expenses, and savings goals. Account for potential costs like legal fees or new living arrangements.
12. Consider Using a Divorce Mediator
For a less adversarial approach, consider hiring a divorce mediator. Mediators can help negotiate financial agreements amicably while reducing the emotional and financial toll of litigation.
13. Conduct Home and Land Appraisals
If you own real estate property, a professional appraisal can determine its current market value. This information is critical for fairly dividing property or deciding whether one party will keep the home.
14. Insurance Policies and Investments
Review all insurance policies (life, health, and auto) and ensure appropriate updates. Evaluate investments and determine how these assets will be divided.
15. Check for Property Liens
Verify if any liens exist on jointly owned properties. Unresolved liens could become a future issue during or after asset division.
16. Cancel Joint Credit Cards
Close joint credit cards to avoid future debt surprises. Notify creditors and confirm in writing to protect your credit score.
Contact C. Alvarez Law For Attorneys Who Can Help You Handle Asset Division in Your Divorce
Divorce extends beyond financial decisions — it’s a complex legal process that requires legal guidance. The family law attorneys at C. Alvarez Law stand ready to help you through every stage of the divorce process.
Our experienced team in Orlando combines knowledge and empathy, tailoring strategies to meet your unique needs. Whether it’s navigating asset division or negotiating child custody agreements, we’re here to provide clarity and confidence.
Managing a divorce can feel overwhelming, but you don’t have to face it alone. Contact C. Alvarez Law today to learn how we can support you through this challenging time.
C. Alvarez Law
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