Throughout your marriage, you may have become accustomed to a lifestyle of shared income. When you share various high-value assets, property and wealth, you cannot afford to be nonchalant about your finances. If you do not protect your wealth now, divorce can wreak havoc on your finances.
Fortunately, there are ways for all couples to take care of their finances before the divorce.
Monitor your spending and avoid large purchases
Do not make any extravagant purchases before or during the divorce. Everything you purchase while married may be split in the divorce. To avoid having to divide more assets, refrain from spending too much money. Instead, save your money and monitor how much money comes and goes from the household.
On the one hand, you should monitor the finances to ensure your spouse does not hide any assets. On the other hand, you should be careful of what you spend so that your spouse cannot accuse you of attempting to hoard money.
Start organizing all of your financial documents
In an ideal world, you already have your financial documents organized. However, if you and your spouse share the financial records, you must ensure you have copies. This includes bank statements, tax forms and all of your debts and liabilities. Include documentation of all property, vehicles and other high-value assets you own.
During a divorce, frame all of your financial decisions around your future goals and what your financial situation looks like following the separation. You may want to open up a separate checking and savings account for money you earn during and after the divorce.