When you and your spouse decide to divorce, many things need to be taken care of. One area that may not come as a surprise is finances. Firms with law professionals such as Cordell and Cordell lead in the field and help bring relief to this significant event in your life.
3 Ways to Handle Finances During a Divorce
Make a List of All Your Assets and Debts
Making a list of your assets and debts is essential in the divorce process, and this will make it easier to split up the finances fairly with your spouse when you are done divorcing. It will also be easier to figure out how much you should pay or receive from your spouse in child support, alimony payments, and spousal maintenance. Some of the assets that need to go on this list are retirement accounts such as 401(k)s and IRAs, bank accounts, credit card balances, personal property like vehicles or furniture, and even real estate.
Create a Budget for Yourself
Creating a budget is another crucial step to take when going through the divorce process. An excellent way to start this process is by writing down your income, expenses, assets, debts, and future goals that you want to accomplish during the year. From there, it will be easier to see where you can make some cuts so that you can live within your new budget. It is also a good idea to review your credit score and credit report during this time, and you may need to dispute any inaccurate information on the report with the credit bureau. Firms such as Cordell and Cordell lawyers can help you with these plans to secure your future financially.
Update Your Beneficiary Designations
Updating your beneficiary designations is another step that needs to be taken during the divorce process. Suppose you are unsure of who should receive what once you die. In that case, it may make sense to update your beneficiary designations with retirement accounts like 401(k)s and IRAs, life insurance policies, bank account balances, private property like vehicles or furniture, and other financial products that list a beneficiary. This will make it easier for your spouse to handle any of these assets after you die without having to wait for a lengthy probate process.