From determining living arrangements and dividing assets to devising parenting plans, a divorce carries many challenges. Money matters are an especially contentious subject in a split. Fortunately, there are steps each spouse can make to prepare their finances for the various legal processes and procedures. Below are a few ways to get started.

How to Get Your Finances in Order Before Divorce

1. Get Organized

Gather all financial documents, categorize them, and put them in order by month and year. Include bank statements, like checking, savings, and retirement account information, as well as pension and loan paperwork, such as 401(k) statements. Add to the list credit card bills and any records associated with real estate, such as deeds, mortgage agreements, and property tax payments.

2. Make a Transition Budget

Create a budget for your transition to a post-divorce life. Most spouses face new financial realities during and after a split, so determine how much money you're working with and where it will go while working out the details of the divorce and settlement. Once you reach an agreement, you will have to rework the budget; but, having a financial game-plan in the meantime reduces stress and offers peace of mind and perspective.

3. Don't Forget About Taxes

Many people overlook taxes, but they are crucial to understanding your finances in a divorce. Varying types of financial accounts are not taxed the same way, so you will have different obligations depending on what you retain in the split. Always check with an attorney or financial advisor about the amount you will incur in taxes with the money you receive in the settlement.

The above tips will help you better navigate the financial aspects of life after divorce. Ronald D. Zipp, Attorney at Law, can assist you with the legal side of the split; he offers quality representation in family law and guidance through every step of the process. For over 40 years, he has been working with clients throughout the New Braunfels, TX, region, protecting their rights and best interests. Call (830) 629-5600 to schedule a consultation today. Visit the website for more information about his background and expertise in this practice area.