One of the most diffilcult aspects of divorce is that of financials. They’re messy, and sometimes they are component of the divorce itself. So tackling these right off the bat can prevent a lot of stress and headache in the long run. Therefore, we’ve created a financial checklist of how to divide and conquer your financials as you begin to separate them between the two of you during a divorce. It sounds unmanageable, especially if your situation has become messy or hostile, but handling these things civilly will make for a more prosperous and comfortable parting for both of you.
Creating a Financial Checklist During Divorce
Assess your family debt
If you’ve bought a house together, a car together, shared medical bills— every bit of the monthly payments you are making on these recurring debts must still be satisfied. So, decide how exactly they will be handled. The best rule of thumb is: whoever keeps the car— keeps the payments. Same goes with the house, as well as the person the medical bills pertain to.
Finding clear cut ways to assign these amounts is the cleanest way to go about dividing them. This will also be a good time to decide how much it will take to run the household, especially if you have children. That way, you know what it will take financially to keep a home running
Calculate savings and joint accounts
The trickiest part of handling financials is deciding who gets what when it comes to money that is actively cycling into accounts. A logical first step will be to create separate accounts and relocate your individual income into those accounts. Now this is a good way to go with income that will be coming in after you have decided to split finances.
Some couples find it helpful to put their shared debts at the top of the list. That way they are able to cut ties more cleanly and more quickly. Others find it easier to share those debts until each party has gotten their bearings. That way each of you is able to more easily handle those debts on your own. How you handle these things is all in what you are comfortable with, and how you two decide to tackle what’s left of your life together.
Take an inventory of your assets
From the paintings on your wall, to the kitchen table— you have to take stock of all of these items you have invested in together and decide who gets what. This is one of the most clinical steps, and one most people dread the most, but it is essential. These assets and valuables are joint property, therefore the two of you must assign them. Decide what to keep, what to give, and what to sell as a means of paying off those joint debts we talked about.
Ultimately, everything you have bought together over your years of marriage is ‘up for grabs’. Because of that, your method of dividing and conquering is entirely up to the two of you. Some people find it helpful to assign one spouse the job of dividing all the assets into two parts, and the other gets their choice of the parts. Others find it helpful to barter. For example, you get the kitchen table and chairs if I get the coffee table and TV.
Your financials following a divorce are of main concern
So, there’s no harm in making it a bit clinical. This is your livelihood after all. Ultimately, our financial checklist is just a starting point and a guideline. No two divorces are ever the same, and no two financial plans will be either. Find what works for you, and go forth. And if you have questions? We are happy to answer them. Best of luck to you during this trying time.