How to Prepare Financially Before Filing for Divorce in Your State
Preparing for divorce can bring difficult questions about your future, especially when you're unsure how your finances can change. It’s natural to worry about paying household expenses, maintaining stability for your children, protecting your financial interests, or simply knowing where to begin.
Taking a thoughtful approach to your finances before filing can give you a clearer picture of your circumstances during a challenging time. At Brener Hurteau Family Law, we understand that financial concerns are often a significant part of a client's decision to pursue divorce.
Before filing, you can take practical steps such as gathering financial records, reviewing your income and expenses, identifying assets and debts, and considering what your financial needs can be after separation. Working with divorce attorneys early in the process can also help you prepare for the financial issues that can arise throughout your case.
Preparing financially before filing can provide a useful starting point for the divorce process. Located in Mount Pleasant, South Carolina, Brener Hurteau Family Law serves clients in Sullivan's Island, Isle of Palms, Charleston, James Island, Johns Island, Daniel Island, and Kiawah Island. Reach out to us to discuss your circumstances and learn how we can help.
Gather Your Financial Records
Before filing for divorce, begin collecting copies of important financial documents. Having these records organized can help you and your divorce attorneys develop an accurate picture of your household finances. It can also help identify accounts or obligations that can need further review.
Some records to collect include:
Bank account statements: Include checking, savings, and other accounts.
Investment records: Include brokerage accounts, stocks, bonds, and mutual funds.
Retirement statements: Include 401(k)s, pensions, and IRAs.
Tax returns: Save recent federal and state returns.
Pay and employment records: Keep recent pay stubs and benefits information.
Property records: Gather deeds, mortgage statements, and tax records.
Debt statements: Include credit cards, loans, and other debts.
Getting your records together early can make completing financial disclosures easier and can help your divorce attorneys identify questions that should be addressed before negotiations or court proceedings.
Create a Realistic Post-Divorce Budget
Your current household budget can look very different from your budget after separation. Before filing, take time to estimate what you'll need to maintain housing, transportation, insurance, food, utilities, childcare, and other regular expenses.
Your preliminary budget should account for:
Housing costs: Consider rent or mortgage payments, utilities, property taxes, insurance, repairs, and maintenance.
Transportation: Include vehicle payments, fuel, insurance, registration, repairs, and public transportation.
Household expenses: Account for groceries, clothing, personal care, household supplies, and other recurring costs.
Children's expenses: Consider childcare, education, activities, clothing, medical care, and other child-related costs.
Insurance: Review health, life, homeowners, renters, and automobile insurance expenses.
Professional expenses: Set aside funds for legal fees and other costs associated with the divorce process.
A realistic budget isn't meant to predict exactly what your financial situation will look like after divorce. Instead, it gives you useful information when discussing temporary support, property decisions, and other financial matters with your divorce attorneys.
Review Assets, Debts, and Property
Knowing what you own and what you owe is an important part of financial preparation. Make a list of assets and debts, including who appears on the title or account and any approximate balances or values.
This makes it particularly useful to identify properties that may require additional review. Consider creating separate lists for:
Real estate: List homes, vacation properties, and rentals.
Vehicles and valuable property: Include vehicles, jewelry, collectibles, and artwork.
Financial accounts: List checking, savings, investment, and retirement accounts.
Business interests: Document ownership, accounts, and equipment.
Debts: List mortgages, credit cards, loans, and other liabilities.
Separate property: Identify property owned before marriage or received as gifts or inheritances.
Don't transfer, hide, sell, or give away assets simply because you're preparing for divorce. Instead, document what exists and discuss questions about ownership and division with experienced divorce attorneys.
Protect Your Financial Information
Financial preparation also means taking reasonable steps to protect your records and monitor your accounts. Review your credit reports, account statements, and recurring charges so you know what obligations exist in your name.
You can also want to:
Monitor your credit: Review your credit reports for accounts, balances, and activity you don't recognize.
Secure important records: Store copies of financial documents, insurance policies, tax returns, and property records somewhere secure.
Review automatic payments: Identify recurring charges coming from joint accounts or your individual accounts.
Update account access carefully: Protect your personal passwords and financial information without accessing accounts you're not authorized to use.
Document unusual transactions: Keep records of significant withdrawals, transfers, purchases, or other transactions that can require discussion with your attorneys.
These steps can help you develop a clearer financial record before filing. Your divorce attorneys can then review the information with you and discuss which financial decisions you need to wait until there is a formal agreement or court order.
Work With Divorce Attorneys Before Filing
Financial preparation doesn't have to happen all at once. Start by gathering documents, creating a budget, identifying property and debts, and writing down questions about your finances. The more organized your information is, the easier it can be to have productive conversations about your circumstances.
At Brener Hurteau Family Law, we help clients approach divorce with careful attention to their financial concerns and individual circumstances. We can review the information you've gathered, explain how South Carolina's rules can apply, and help you understand the financial issues that can arise during your case.
Preparing financially before filing can give you a clearer picture of your situation. If you're considering divorce, reach out to Brener Hurteau Family Law in Mount Pleasant, South Carolina, serving Sullivan's Island, Isle of Palms, Charleston, James Island, Johns Island, Daniel Island, and Kiawah Island.
