Divorce can be an emotionally challenging process that requires careful consideration of several issues, including finances. One of the most critical steps is to separate your finances from your spouse. This can include dividing all jointly-owned assets and setting up private bank accounts.
When Is The Best Time to Financially Separate?
The moment you and your spouse decide to divorce is the perfect time to start the lengthy financial separation process. The process can take several weeks or even months, depending on the complexity of your finances. You and your spouse should take inventory of your assets and debts and prepare for the asset division process.
It is also essential to consult your attorney and a financial advisor to ensure you make sound financial decisions that could affect your future.
How Should I Begin?
Once you believe you have an understanding of how your finances will be divided, the next step is to set up private bank accounts. This is crucial for several reasons, including privacy and independence. It allows you to manage your finances separate from your spouse and provides a bank account solely to deposit funds following asset division. It also allows you to make independent decisions about how to spend your money, save for emergencies, and manage your debts.
Once you have separated your finances, you should keep accurate financial records. This will help you keep track of any new debts or assets acquired in the future and also help in tax filings. Maintaining clear financial records is also helpful in financial disputes or legal proceedings, especially if your spouse accuses you of hiding assets during the asset division process. It is also an excellent way to put your financial affairs in order and ensure you are on the right track financially.
How Can I Prepare for Financial Independence?
It is also essential to note that financial separation is not just about dividing assets; it is also about preparing for financial independence. You may have to build and maintain your financial portfolio if you were not the primary financial contributor in your marriage.
You must adjust your lifestyle, budget, and investment plans to match your new financial reality. In some circumstances, you might be able to seek alimony for financial support as you get back on track and establish a new financial lifestyle. Creating a financial plan with a financial adviser is advisable to ensure long-term financial security.
Unwavering Commitment to Delivering Results
Financial separation is a crucial step to take following a divorce. It is essential to start the process soon after the decision to divorce to avoid future financial and legal disputes. Setting up private bank accounts, maintaining accurate financial records, and creating a plan to match your new financial reality is also necessary.
By separating your finances and taking control of your economic future, you can breathe a sigh of relief and move on to the next phase of your life. Make the first step toward a new chapter today by calling our firm at (201) 500-2151 and requesting a confidential consultation with one of our attorneys.