Divorce is a big step in California, but it doesn’t have to be a major disaster. If you take the time to plan ahead and prepare your finances for divorce, you can minimize potential problems. If you have not prepared your finances for divorce yet, here’s what you need to know.
The Costs
If you’re not financially prepared for divorce, it could cost you even more money than just splitting everything down the middle. There are additional costs that may come up during a divorce that can put an incredible strain on any family’s finances. The most common of these are attorney fees, property division costs, and court filing fees.
Planning Within Your Means
One of the best ways to plan ahead and prepare your finances for divorce is to look at all of your assets as well as debts. It’s possible to have your spouse or partner sign a prenuptial agreement, which could help protect your assets. This is an excellent way to prepare yourself for the possibility of divorce ahead of time. On top of this, it’s important to keep your expenses within a reasonable range. This will help you avoid additional debt and the financial problems that often follow in their wake.
Lastly, ensure you have all the necessary documentation for your assets, bank accounts and other financial holdings. This will help you avoid losing money during the divorce process due to a lack of sufficient documentation for any given asset or account.
It can be difficult to prepare yourself for divorce financially when going through a separation or if there are children involved, but it is possible. Even if divorce seems like an impossibility right now, it’s still a good idea to plan ahead and prepare for anything. The more time you take right now to prepare your finances for divorce, the easier things will be for you later.