12 Steps to Protect Your Money in Divorce
Ted’s thoughts:
I have worked with clients that are newly divorced as well as those that are contemplating that action. My newly divorced clients often will say “I wish I could have anticipated what this process was all about.”
I recommend you read and follow the 12 Steps outlined in the following/above article to get ahead of things you may need to consider in your divorce and help you to keep on track with your priorities. You can think of it as a helpful checklist for you to refer to.
No one gets married thinking one day you may get divorced, but “Life Happens.” I make no judgments and I am here to support you.
If you are already divorced, we can develop a plan that can give you strength and confidence as you move forward into a new chapter in your life.
Wherever you may be in the stages of divorce, I can be a sounding board to develop a plan that is individualized to your situation.
The most important things to do during a divorce
It's no secret that a divorce is expensive. As for how much divorce will cost you, it's hard to estimate since costs go far beyond hiring an attorney and can affect everything from your mortgage payments to your utilities and insurance.
But one thing is certain: Everyone emerges from a divorce financially banged up. But once it's over, you don't want to realize that your ex-spouse came out of the marriage in excellent financial shape while you're in ruins. Ideally, both of your pocketbooks should take an equal hit. With that in mind, here are 12 steps to take as you and your spouse begin splitting up assets.
Learn how much money you have.
Even if you don't think you're rich, you may have more assets than you realize, and you can’t protect what you don’t know is there.
Holly Davis, a family law attorney and partner with Kirker Davis, a law firm in Austin, Texas, says the first thing she recommends to anyone getting divorced is to find out what money you and your partner have.
“This means knowing the balance of everyone’s 401(k), savings plan, credit card bills, 529 accounts, everything,” Davis says. “When you know the grand total of what you own, you can then start forming an opinion about what you own and what could possibly be your financial future upon a divorce."
Don’t hide money.
Hiding money may be tempting if you feel your spouse isn’t trustworthy, but don’t do it, urges Damian Turco, a family law and divorce attorney who owns and manages Turco Legal PC, a law firm with four offices in Massachusetts. “Hiding money in anticipation of a divorce is a generally terrible strategic mistake and may result in an escalation of contentiousness, legal fees and loss of credibility with the most important person in your divorce: the judge,” he says.
That doesn’t mean you shouldn’t take steps to preserve your marital assets and income, Turco adds. But you should take those steps out in the open, he says.