April is Financial Literacy Month. It’s important for you to know that the most difficult decision you’ll ever make has huge financial ramifications.
Make sure you know your financial standing in these key areas before beginning your divorce.
Income & Debt. Knowing your and your spouse’s income is very important. This includes wages, anticipated bonuses, legal agreements or arrangements if your spouse is involved in a partnership, for example, and any trust fund/family money that might be relevant, among many other things.This would include the mortgage, any outstanding loans including student loans or car loans, and outstanding credit card debt. One way to get a full accounting of debt is to run a credit report. READ MORE >>>
Current Monthly Expenses: Make a list. You ultimately will need a full accounting of your and your children’s monthly expenses. A complete understanding will help inform the payor parent during negotiations of how much child support is affordable and inform the payee parent of how much child support is necessary to support the child(ren) without disrupting their lifestyle. READ MORE >>>
Anticipated Future Expenses: Make another list. This one should include anticipated educational expenses including private school and college, extracurricular activity expenses including the costs of uniforms, travel to events, concerts, etc., as well as required contributions to any education-related savings accounts and management of trusts that might be set up for the children. READ MORE >>>
Get professional guidance from divorce financial analyst and matrimonial attorney if you need it.
Read my full article on Thrive Blog for more details about getting your finances in order prior to a divorce.