If you are considering a divorce or separation, your first step should be to consult with an attorney and discuss your rights. After that, taking the following additional steps early on can help ease the process.
Make sure that you place any copies you make in a safe location outside of your home.
√ Copy all financial records for at least the past two years, including income tax returns (including attachments such as W-2 and 1099 statements); recent payroll stubs; bank statements; brokerage account records; employee benefit records (such as pensions, deferred compensation, and 401K accounts); IRA accounts; stocks; bonds; credit cards and other debt records; copies of appraisals for any items of particular value (such as expensive jewelry, artwork, collections); and any accessible business records.
√ Copy health, liability and property insurance information.
√ Copy all real estate records, including deeds, mortgage records, and closing statements.
√ Copy proof of ownership of all other property, including the title to your car(s), boat(s), stock(s), etc.
√ Take an inventory of any items of value, such as collections, art, and the contents of a safety deposit box, if not already covered by an appraisal. Take photos as needed.
√ Open a separate checking or savings account and consider transferring up to 1/2 of the money from joint savings accounts or checking accounts into your new account.
√ Apply for credit in your own name, particularly if you do not already have an established credit rating independent from your spouse.
√ Divorce has a way of destroying people's credit, and you should be prepared to protect your secured assets (from foreclosure or repossession) and credit rating. If possible, pay off joint debts before you separate. If that is not possible, you may need to be prepared to pay joint debts yourself until your case gets resolved or until you know your spouse is paying the bills.
√ Close joint credit cards or lines of credit, or, if possible, have the creditor remove your name from existing cards or lines of credit. While you will remain liable to the creditor for existing debts, you can minimize your responsibility for future charges. Note that in a divorce, you may still be liable for marital debt even if your name is not listed as a debtor on the account.
√ Copy any prenuptial or postnuptial agreements.
√ If either spouse earned a degree or license during the marriage, for instance, a Bachelors, Masters, PhD, MD, DVM or J.D., obtain copies of any documents relating to that degree or license, including copies of the diploma, license, grade reports, tuition bills, etc.
√ If possible, establish a relationship with a therapist or counselor. No matter how strong you are, and how sure you are about your decision, divorce is stressful and turns your life upside down. You will appreciate the support later on.
√ Health insurance coverage for a non-employee spouse ends when the divorce becomes final. If you are the non-employee spouse, explore your options to continue existing health insurance coverage (Federal COBRA regulations allows coverage to continue after a divorce for a fee, but only for a limited period of time), or to obtain your own policy.
√ If you are not working, if at all possible, consider making plans to return to work, now or in the near future. Spousal maintenance (formerly known as alimony) is generally paid for a short period of time in order to rehabilitate the receiving spouse (in other words, to allow her or him the opportunity to obtain training to return to the workforce). Of course, there are exceptions, such as where the spouse has medical limitations to working outside of the home, or if the receiving spouse is older and has little or no work experience, but those are the exceptions, not the rule.
Also consider that unless your spouse is wealthy, the amount of maintenance you receive is not likely to provide you with the lifestyle you want. Remember, maintenance is paid from the same pool of money that used to support your entire family, in one single household. When child support and maintenance are ordered to be paid, that same single pool of money now has to support two households, and it can only stretch so far. Consequently, the amount is often less than what you would hope for.
Also keep in mind that some parties who pay maintenance and/or child support are not consistent in meeting there obligations; payments may be late, missed, skipped, or simply ignored for a period of time, leaving the receiving spouse in a position of having to seek court assistance to collect what is due. While you have recourse if payments are not made, that recourse takes time, and bills have to be paid in the interim. If you are self sufficient, the effects of a non-payment on your household are minimized, since the bills are being paid.
√ Consider where you are going to live. Even if you want to stay in your home, your spouse may not be required to leave immediately. Generally, a court will not force a party to move unless there is the potential for abuse, violence or the threat of violence. If this is not an issue, and you wish to remain in your home, you may need to live with your spouse while the divorce action is pending, a situation that can quickly become intolerable.
√ Consider retaining the services of a Certified Financial Planner on a fee for service basis. These professionals can help you determine what you can or cannot afford, and they can provide guidance with respect to making financial decisions associated with the settlement of the divorce action. For instance, they can advise you on whether you should trade off an interest in a pension for the marital home, and discuss any tax consequences with you before you make a decision. Often, the service they provide is invaluable.
Disclaimer: Copyright 2008 The information obtained at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.
Francine Cohen Law Office of Francine Pickett Cohen, LLC1110 South Avenue