By preparing for a 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 sound decisions and start preparing for your life after divorce, as well as helping you to avoid some of the post-divorce pitfalls. Below are some things to think about as you begin preparing for a divorce.

Get All You Paperwork Together
The amount of information required for a divorce can seem overwhelming, so it makes sense to begin gathering all of it together as soon as possible. You will need to have a record of names, account numbers, addresses, and phone numbers for all of your assets and debts. Don't forget bank accounts, credit cards, loans, stocks and bonds, mortgages, and title information. It also helps to have tax statements for the last three years, as well as pay stubs and employment information. If there is a business involved, get a copy of the tax records, assets, and debts. Other paperwork to make copies of are deeds, prenuptial or antenuptial agreements, wills, and powers of attorney.

Understand Your Financial Situation
Once you gather all the necessary paperwork, you can then determine the net worth of the marital estate. The marital estate is everything that was acquired during your marriage. Net worth is the total of all debts subtracted from the total value of the assets. This will give you an idea of what you will be entitled to when you get divorced. If you will be receiving an inheritance, don't put it in both of your names, and don't use it to buy marital property or pay marital expenses. This will help to keep your inheritance separate from the marital estate.

Another consideration when preparing for a divorce is to keep a budget of your income and expenses. This will help provide documentation for determining the amount of support awarded, as well as give you an idea of what it will take to live on after your divorce. For some people, it may make sense to hire a certified divorce financial planner to help sort out all the financial information, and assist in making sound decisions during the actual divorce.

Become Financially Solvent
Divorce has a way of wrecking a person's credit. While you are preparing for a divorce, you should get a copy of your credit report to see where you stand. If your credit is poor, you should start paying down your debt and cleaning up the bad marks on your credit file. Doing so while you're married can help you qualify to buy a house or car after you divorce. If you don't currently have a credit record, apply for a credit card in your name only. Establishing your credit while you're married is much easier than after you get a divorce.
It's important to not build any additional debt, as you will want to keep assets as liquid as possible. Likewise, don't allow your spouse to take out more debt, or convince you to refinance the marital home before filing for divorce. This just further entangles the finances and leaves both parties with larger liabilities after divorce.



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