Tips for Securing Your Finances During a Divorce

When couples in California divorce, they often have many concerns, like how their property will be divided and how much time they will have to spend with their children once a custody arrangement is determined. However, one of the most stressful issues divorcing spouses often face is how their short and long-term financial stability will be affected. 

Even if the divorce is friendly, it is natural to be worried about how the financial issues will turn out. Luckily, there are several steps spouses can take before or during the divorce process to protect their financial best interests.

Financial Tips for the Divorce Process

One of the best ways to protect your finances during a divorce is to begin preparing for the divorce in advance. Gather as much information as possible about assets, debts, and accounts before leaving the marital home. Once spouses separate, finding or sharing these records can become more difficult.

There are also several things that spouses can do to protect their finances as they begin a divorce. These include the following: 

• Stay healthy – Divorce can be an emotionally and physically exhausting process, and it is difficult to make wise decisions when you are feeling stressed out or run down. Those in the midst of ending their marriage should try to get enough sleep, eat healthily, exercise, and avoid excessive drinking. Taking proper care of your physical and mental health will help you to think clearly about financial issues. 
• Examine all possible outcomes – Because the divorce process can be extremely emotional, spouses may have a hard time analyzing the effects of accepting a settlement. Spouses who get caught up in the idea of “winning” or “losing” are not focusing clearly.  Those going through a divorce should carefully examine how various settlement options could affect their financial future.
• Don’t hastily accept a settlement – spouses may be tempted to accept a settlement that they know is not entirely fair just to put the divorce process behind them. Spouses should not make financial decisions hastily and should thoroughly consider their options before committing to an agreement.

During the divorce process, spouses may feel overwhelmed by the financial difficulties they face. When this occurs, those going through a divorce should remember that the pain they feel is temporary, but that the financial decisions they make now can have a lasting impact on their situation. 

Mistakes to Avoid

While there are many steps spouses should take during the divorce process, there are also several mistakes divorcees should avoid making to protect their finances. For example, according to CBS News, those embarking on the divorce process should avoid not familiarizing themselves with the details of their finances. Spouses getting a divorce should educate themselves regarding their assets, debts and the state of any retirement accounts before proceedings begin. Additionally, divorcing spouses should avoid letting their emotions control their decisions during proceedings and refrain from using their children as a bargaining tool. They should also refrain from only using financial accounts shared with their former partner and set up their own bank and credit card accounts in their name soon after the decision to divorce is made. 

Turn to a Family Law Attorney Near Salinas

Spouses in California who decide to end their marriage may worry about how mistakes like these could affect them at the conclusion of the divorce process. If you and your spouse have decided to dissolve your marriage, reach out to an attorney to find out how you can protect your best financial interests.