As a busy divorce attorney, I am often asked about the key to a successful divorce. When I mention to people one of the key factors is getting prepared for their divorce, I often get a strange look. Who does that? But we prepare for everything! How many of us wake up one day and go get a job? Go get a house? Go and have a child? We prepare before we make important decisions, and getting a divorce is no different. Now that you’ve decided to prepare for success, what steps should be taken next?
Table of Contents
- A Successful Divorce Starts with Hiring the Right Attorney
- Get Your Financial Information In Order
- 1. Determine what you own.
- To Download our helpful Guide to Marital Property click here.
- 2. Determine what you owe.
- Gather Income Documentation
- Self-Employment and Documenting Income
- Estimate Expenses Post-Divorce
- Establish Your Own Credit During Divorce
- Avoid Going Into Debt
- Protect Joint Accounts
- Close Joint Credit Accounts Prior to Separation (if Possible)
- Advise Creditors of Pending Divorce
- Don’t Give Your Spouse Info to Use Against You in Court
A Successful Divorce Starts with Hiring the Right Attorney
The most important decision you will make is hiring the right divorce attorney. In my opinion, the divorce attorney you pick should practice exclusively in the areas of divorce and family law. This is a highly specialized field and you do not want a lawyer who is dabbling in real estate, personal injury and family law. Meet that attorney and see if you can work with them.
Are they going to communicate with you? How will they communicate with you – email, phone, through a paralegal, etc.? Although you may want to handle your divorce amicably, keep in mind, if the need should arise, you will want a lawyer who can put up a good fight for you. You don’t want to find yourself in the middle of a fight, and discover you have an attorney you cannot effectively handle that fight. You don’t want someone who only wants to fight either, but someone who can do what you need.
Get the information you need to plan your divorce with confidence and ease your stress.
Get Your Financial Information In Order
Once you’ve found the attorney you want to work with, get your financial picture in order. You need a clear picture of where you and your spouse stand financially. One of the primary goals of the divorce process is to the make an equitable distribution of marital assets debts. In order to get your fair share it is imperative that you know what is owned and what is owed
This is a two-step process:
1. Determine what you own.
Determine all property and assets you own since you got married. Some marital assets are obvious. It is clear that the marital home, any financial accounts and vehicles are assets that should be split equitably. Other not so obvious assets may include artwork, pension plans, inheritances or belongings brought into the marriage.
You should make a list of all possible assets you own. Gather all documentation regarding each asset including the present value, when and where the asset was purchased and whether it was purchased with joint or separate funds. You will especially want a copy of any recent real estate appraisals. Turn all documentation over to your attorney. Be sure to keep a copy for yourself.
To Download our helpful Guide to Marital Property click here.
2. Determine what you owe.
When determining what you owe it does not matter whose name any debts are in. Marital debt will be split based on who is more financially able to pay the debt, not by whose name the debt is in. The easiest way to determine marital debt is to get a copy of your credit report. Any debt you have will be listed on your report. You will also be able to find out if there is any.
Once you determine what debt exists you need to obtain statements on all open accounts with the balance due showing. When you turn this information over to your attorney, don’t forget to keep copies for your files.
Gather Income Documentation
You need documentation showing your income and the income of your spouse. If you and your spouse are salaried employees, you will need a copy of the most recent pay stubs plus your most resent income tax return.
Self-Employment and Documenting Income
Determining income becomes more difficult if your spouse is self-employed. In such a case, copies of bank account statements and financial business statements will give a clear picture of income. It is always a good idea to make copies of such statements before separating and filing for divorce.
You may be able to get an idea of how much your spouse actually makes but, it can be almost impossible to determine true income when a spouse is self-employed. Gather what information you can and then your attorney can help get the rest through the discovery process. You’ll need to prepare a budget, so you know exactly how much money you will need. This is important because the income you used to live on, is now going to be divided .
Estimate Expenses Post-Divorce
For a successful divorce, it will be important to know your financial needs once you are no longer with your spouse. You will have to estimate some expenses but it is important so that you can have some idea of what you will need to survive in your new life. It is also important because it will influence how you negotiate your divorce settlement. You need to know what you will need financially in order to evaluate your settlement options or what you may ask for should your case go to court.
Establish Your Own Credit During Divorce
If you don’t have any credit in your name alone you should establish some now. You can do this by obtaining a credit card but remember you want a card that is in your name only. Many women find that, after divorce they have a hard time purchasing a home or car because they have spent years sharing credit with their spouse. All that credit you’ve had over the years with your spouse is helpful to him but once you are a single woman, you will get very little ‘credit’ for keep those payments up.
Avoid Going Into Debt
Once you have a credit card in your name use is sparingly and make sure you are able to pay it off each month. The goal is to establish a good credit score not to run up a bunch of debt. This is done by using credit cards only to the degree that you are able to pay off monthly.
Protect Joint Accounts
You will want to protect yourself and keep your spouse from being able to clean out any joint accounts you have together. If you fear your spouse doing such a thing you can protect yourself by opening accounts in your name alone, remove half (½) the funds from the joint accounts, and deposit them into your new accounts.
Do not hide the fact that you have done this and do not spend the money foolishly. Document every penny you spend so that you can have an accounting for it during settlement negotiations or in court. If you have savings accounts, money market accounts or any type investment accounts and you fear your spouse will tamper with those you should consider having the accounts frozen. You should, of course, discuss with your attorney any action you plan to take regarding joint financial accounts.
Close Joint Credit Accounts Prior to Separation (if Possible)
Before you separate when possible, close all joint credit accounts. Closing them before divorce proceedings will keep an angry spouse from using the account and running up charges that you may later be held responsible for. Nothing will derail a successful divorce process faster than a spouse revenge spending!
Offer to close the accounts by paying a smaller amount than is owed. If this is done, get a letter from the creditor that the account has been paid in full and a written promise that they will not file anything derogatory about the account to the credit reporting agencies.
If you are not able to pay off or come to a settlement agreement regarding the balance owed you should have the accounts frozen. This will keep you from being able to use the account but will also protect you in the end. Once the divorce is final, the balance owed on the account can be transferred to the party the court holds responsible for the debt. If the responsible party does not pay the debt then you don’t have to worry about it affecting your credit score.
Advise Creditors of Pending Divorce
Mounting credit card debt can derail a successful divorce. Contact and alert creditors to the fact that you are going through a divorce. If there is a change of address, make sure they know it so that you will continue to receive bills from all joint accounts.
Make sure all credit card bills are being paid. Divorce proceedings can take months and all it takes is one late payment to hurt your credit. Even if you have to pay the minimum on accounts that you know will ultimately be your spouse’s responsibility it will be worth it.
Don’t Give Your Spouse Info to Use Against You in Court
Lastly, do not give your spouse information to use against you in court. Facebook, Instagram and other social media accounts should only list information that you would share with your boss or a member of your church. If you really need to go out and party, don’t take pictures of it! The divorce process will be stressful enough for you! Don’t give your spouse ammunition to use against you!
If you follow these steps you will be on your way to preparing for a successful divorce. And, don’t go it alone! If you are in the Chicago area, Anderson & Boback family law attorney are here to help. Contact us today with your consultation request.