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Take these financial steps when preparing for divorce

On Behalf of | Oct 8, 2021 | Divorce

When spouses in Colorado choose to end their marriages, they do so for many different reasons. Regardless of the circumstances surrounding divorce, those who experience it often have to go through tough conversations and seemingly endless paperwork. Learning how to financially prepare for a divorce is one of the most important things a person can do during this time. The following strategies may help facilitate a clean financial transition.

Gather financial records

Try to begin gathering and organizing all financial records and documents as soon as divorce becomes imminent. These can be things like bank statements, tax returns, information on loans and employment information. It will take time to gather and organize financial information, so get started as soon as possible.

Open new accounts

Many spouses have joint bank accounts. However, before heading into a divorce, it is a good idea to open up an individual bank account that the other party cannot access. Be sure to update any direct deposits with the new account information. Do the same for any joint credit card accounts.

Determine marital assets and liabilities

List out any assets or debts that were acquired during the marriage. Debts acquired during the marriage by either spouse will need to be accounted for in the total marital liabilities. Any large debts that were acquired during the marriage will need to be reviewed in the divorce proceedings.

Divorce is notorious for being an emotionally draining experience and often has major financial impacts. However, making the proper financial preparations before heading into the divorce process can mitigate some of the financial fallout. Legal help can prove invaluable when navigating the challenges and decisions that come with ending a marriage. Any person in Colorado who has questions about divorce can benefit by seeking the services of an experienced attorney.