Money And Divorce
The #1 financial mistake women make in divorce is that they fail to thoroughly understand their financial situation before deciding to get a divorce. Almost half of the marriages in North America end up in divorce. For most people, divorce is the last resort, and by the time they seek a divorce, emotions are high and rational thinking “goes out the door.”
But women need to keep their cool and have a clear picture of the finances in their marriage before heading to a divorce lawyer.
This is a list of critical financial information women need to gather before the divorce.
All sources of income for each spouse — employment income, investment income, side hustles, rental income, pensions, child support, etc.
How, when, and where are these deposited?
Bank account information — joint as well as individual accounts.
Financial obligations — Mortgage or rent payments. Car Loans etc.
Mandatory and voluntary deductions for benefits as evident on each spouse’s paycheck.
Support payments made by either spouse to/for prior spouses/children from previous relationships.
Mortgage payments or rent payments.
Balance of all mortgage or any home equity loans.
Monthly utility costs.
Retirement and investment account information for both spouses.
Credit card account balances for both spouses.
Home and auto insurance payments.
Investment, retirement, inheritance accounts, or other assets belonging to either spouse before the marriage.
Life insurance policies.
Existing estate plans need to be reviewed.
A divorce can be traumatic. People don’t enter marriage believing it’s going to fail. But many marriages do fail. Most women still leave major financial decisions to their spouses, which leaves them in the dark about some of the financial details of their married lives.
Before getting a divorce, ensure you’re thoroughly aware of your finances in your marriage.
This article was written by Jennifer Thompson
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