Deciding to divorce your spouse in Tennessee is probably not a decision you made lightly. Because it is a serious decision that will impact your life indefinitely, knowing how to prepare may help you keep control of your life.
One collateral effect of divorce involves your finances. Given that you may split a majority of your assets and debts with your ex, your financial situation may change drastically. Paying careful condition to your money-spending habits during this unprecedented time may reduce the negative impact of your split.
Organizing your finances
One of the trickiest parts of divorce involves the separation of marital assets and debts. When you know your current financial situation, you can have a better idea of what to expect in the coming weeks and months. Some of the important financial documents you will want to collect include the following:
- Documentation of individual incomes
- Pension statements
- Stock portfolios
- Bank statements
- Income tax returns
Experts recommend having a tangible copy of each of these records. Having only a virtual record could cause problems if it gets lost or if your spouse decides to conceal assets and tries to delete evidence.
Adjusting your finances
While you adjust to an independent lifestyle again, you may not have access to the resources to maintain your former standard of living. According to U.S. News, implementing a budget from the start can help you identify where you have money to spend. Thoughtful spending can help you avoid uncontrollable debt, financial strain and costly mistakes.
Over time, you may start to accumulate additional income which may allow you to modify your budget. Living within your means, especially if you anticipate divorce, can substantially reduce your risks of losing everything.