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How can you prepare your finances for a divorce?

On Behalf of | Mar 30, 2023 | Blog, Divorce

Divorce is a challenging time for New Jersey estranged couples with so much to consider. As you prepare for your time in court, it’s normal to worry about how the process will play out. However, you can ease things a bit by using these tips for preparing your finances for your divorce.

Organize important financial documents

Gather and organize all of your most important financial documentation. This should include everything from your bank accounts, investment accounts, credit cards, loans, mortgages, retirement and property and your regular household expenses. It can give you an idea of what you and your spouse hold jointly and what’s each of yours individually, which can help with asset and debt division.

Check your credit report and close joint accounts

Obtain a copy of your credit report and review it to see whether there are any mistakes or outrageous purchases your spouse might have made. If you see errors, report them to the credit bureau so they can be corrected. Close any joint credit accounts held with your spouse and open a new one in your name only. If you are new to credit, a secured card can help you build your score.

Open your own bank accounts

Withdraw half of the funds from your jointly-held bank accounts. Open your own checking and savings accounts as you progress with your divorce. Keep most of your money in savings as an emergency account for life’s unexpected situations.

Create a budget for the future

Your financial picture changes in divorce, which means you might have to cut out certain expenses. Create a realistic budget for your spending for the future. When your divorce is final, you can adjust it accordingly.

Focusing on your money during divorce can help ease some of your financial burdens.