Many people think about divorce in the past tense – who earned the most money, who saved the most money, who spent the most money, etc… In present tense, I can tell you from experience (yes, I have been divorced not once, but twice unfortunately) that most of us operate from an emotional aspect. Let me tell you that you do not want to operate from an emotional aspect when dealing with money! Even with all of the information I know about money and divorce, it is not wise to try and work out a settlement on your own. That is where someone like myself, with certifications in divorce and financial specialties, can help you.
The first financial task is to complete a net worth statement. Many times this can be difficult, because one spouse may have much of the information. Some of the information you need to know is the value for each item, name it is held in, account number and other important items. If you do not have this information, a procedure called “Discovery” will be completed so everyone has the information. Of course, it is less costly when all of this information is shared up front.
Many couples are not sure of their financial situation. This is where someone like myself comes in to help compile a net worth statement and review it. Many times a client will hire me to complete this process before they even tell their spouse. They want to know if their lifestyle will change and if so, how drastically.
It is very important to understand your financial situation during a divorce for many reasons. There are not many “do overs”!