Divorce can be a very simple process unless one is involved in a high-asset divorce. Property division, handling debt, children, alimony, and family-owned businesses call for a higher level of due diligence. When emotions are running high, it is important to be pragmatic, rational and flexible.
Being highly organized and prepared is the best strategy when there is more at stake. Let’s take a closer look at some solid strategies to being proactively financially organized.
4 steps to getting finances organized
As the saying goes, “The devil is in the details.” Being detail-oriented with finances is key to being proactive while entering into a divorce:
- List all assets: The possibilities are endless when it comes to the types of assets that a high-value divorce could contain. It is important to make a list of properties, investments, intellectual property, vehicles, vacation properties, mineral rights, cryptocurrencies, car and art collections, rental properties, businesses, timeshares, savings, recreational vehicles and more.
- List all debts: It is natural to focus on assets in a divorce, but it is equally important to list all outstanding debts and financial obligations. These could include contractual agreements, loans, mortgages, liens and other obligations.
- Private property versus marital property: Anything that was owned before marriage may be your personal property, as may anything you happened to inherit. Make a list of all property and possessions that you believe are not divisible as marital property.
- Budget: The cost of the divorce, including proper legal representation and setting up a new residence (if applicable), should be calculated in the divorce budget. This is particularly true if you need spousal support for any length of time.
Undergoing the divorce process can be complicated and stressful. It is impossible to foresee all complications and challenges before it happens. However, being financially organized is a great way to proactively avoid problems with your divorce.