Where children are involved, both parents usually put their best interests at the center of divorce proceedings. After that, couples need to take into account the impact that divorce could have on their finances. Every divorce will come at some financial cost, but this can be kept to a minimum.
The first step in protecting your financial interests during divorce is getting organized. Outlined below are some of the key things to consider when doing this.
Set financial priorities
During the divorce process, you may need to adjust your priorities somewhat. For example, if you have been contemplating a major purchase, such as a new vehicle, it might be worth putting this on hold until matters are settled.
Often, people find it difficult to set a budget both during and after divorce. One method that can help with this transition is to create itemized lists. Consider the short-term financial commitments that take priority, such as household bills, food, clothing, transportation, childcare costs and ensure that they are covered first.
Look out for relevant paperwork
To obtain a fair settlement, those involved in assisting you will need a clear picture of your finances overall. Gathering any relevant paperwork will provide a more in-depth analysis of your current situation. Be sure to look out for any recent pay stubs, credit card statements, information on loans and debts as well as income tax returns.
It is vital that you reach a divorce settlement that reflects fairly on your financial circumstances. Having a clear indication of your legal rights in Michigan will also facilitate this process.