Preparing For Divorce

By preparing for divorce before it actually happens, you can reduce much of the stress and conflict that many people face when they rush the divorce process. Planning ahead allows you to make solid decisions and start preparing for your life after divorce. It is essential that you approach your divorce like it is a business. Below are some things to think about as you begin to prepare for a divorce:

1. Get all of your paperwork together. The amount of information and documentation required for a divorce can seem overwhelming, so it makes sense to use a document checklist and begin gathering all of it together as soon as possible. You will need to have a record of names, account numbers, addresses, phone numbers and e-mail addresses for all persons or companies involved with your assets and debts. Don't forget bank accounts, credit cards, loans and applications, stocks and bonds, mortgages and title information. It also helps to have tax returns for the last three years.

2. Understand money matters relating to your finances and divorce. Once you gather the paperwork, begin determining the net worth of your marital estate. The marital estate is everything that was acquired during your marriage. Net worth is the total of all your debts subtracted from the total value of the assets.

Another consideration when preparing for divorce is to keep a budget of your income and expenses. This will help provide documentation for determining the amount of support you'll either be awarded or required to pay.

3. Become financially solvent. Divorce has a way of wrecking credit. While you prepare for divorce, get a copy of your credit report to see where you stand. If your credit is poor, start paying down your debt and cleaning up bad marks as early as you can.

It's also a good idea to open accounts in your name alone to safeguard your finances. This way you will be able to pay expenses without having to worry about your spouse finding out or taking the money. Use this account to build a reserve to cover emergency expenses, law firm retainers, rental deposits and other expenses in your newly separated life.

4. Make sure you can provide for yourself. If you are currently employed, don't quit your job. If you aren't working, begin drafting a resume. Even if you consider going back to school, recognize that taking care of yourself is key - especially with a divorce action on the way.

5. Seek legal advice. It's beneficial to consult with a divorce lawyer or family law attorney during the preparation stage. Learn what your options are, and get suggestions about how to prepare yourself as well as you can for an eventual divorce. Plus, once you do decide to move forward with divorce, you'll have somebody already ready to handle your case.

6. Make sure that your taxes are up to date. Make sure that all federal and state taxes are paid. This can be a real problem during a divorce. If you suspect that your spouse may have not reported taxes, or paid liabilities, consider filing amended tax returns as married, filing separately.

7. Consider insurance coverage. Even though Arizona requires that insurance policies are to maintain intact pending a divorce action, getting health, automobile and home insurance in your own name may make sense. Just make sure you account for these in your post-divorce budget.

8. Document your valuables. Take pictures or even videotape your prized and most valuable possessions. If things end-up missing during the divorce, this can provide proof of its existence. If you have a volatile spouse, consider getting a safety deposit box to store valuable documents and jewelry.

9. Stay put until you get legal advice. Once you decide to divorce, moving out of the home may be a tempting thing to add to your checklist, but don't - until you speak with an attorney. It may have ramifications relating to child custody issues.