When it comes to managing the financial pitfalls of a divorce, many Maryland individuals and families focus on advice related to the divorce itself, or life thereafter. For example, they may look at ways to manage costs in the divorce process or ask how to balance a budget while starting anew. These are certainly important considerations, but it is equally worthwhile to consider what steps can be taken before a divorce to set both parties up for future financial success. Those who know ahead of time that a divorce may be imminent can and should make certain preparations to support their financial well-being when the marriage officially ends. These steps can include:
- Meeting with professionals, such as a financial planner and family law attorney. Having advance awareness of the possibility of divorce will provide optimal time to implement the advice of these professionals, as well as giving people the space to shop around for the right person or people to support them.
- Gathering copies of key documents, such as tax returns, documentation from employers, insurance policies, bank statements and credit card statements. Business files will also be critical if either party owns a business.
- Set aside money so it is accessible outside of marital accounts, as a backup for if marital accounts are terminated or the ex-spouse stops paying bills.
- Consider one’s financial position, such as credit scores and access to insurance. If access to credit or insurance will be threatened by a divorce, look into how to build these up in advance.
Keeping stock of one’s finances, having an emergency fund set aside, and maintaining good financial records is a smart move regardless of marital situation. In the case of a divorce, however, these moves could be a game changer regarding one’s financial standing. As always, speaking with a Maryland attorney about the specifics of one situation well in advance of filing is a good first step.
