1. Build a Strong Support Team of Experts

Seek recommendations from trusted family or friends for professionals who not only have the expertise you need but also complement your personality. This team might include a divorce attorney, estate attorney, financial advisor, accountant, therapist, and other professionals who can help make the transition smoother.

2. Gather Essential Documents:

Over time, you and your spouse have likely accumulated shared documents from various projects and plans. Here’s a list of essential documents you’ll need:

* Bank statements (from all joint accounts)

* Credit card statements

* Bills

* Mortgage statements

* Investment portfolio statements

* Income sources

* Debt and liability documents

* Pension contributions

* Health and life insurance policies

Organizing these essential documents is crucial for maintaining financial clarity and ensuring both you and your spouse are prepared for any future planning. By keeping bank statements, bills, investment portfolios, and insurance policies readily accessible, you can manage your finances more effectively and confidently navigate the complexities of your divorced financial life.

3. Know Your Net Worth:

Calculate your net worth by subtracting your liabilities (debts) from your assets (what you own). Include properties, cars, investments, and savings on the asset side, and debts like car loans, mortgages, student loans, and credit on the liability side.

4. Review Your Retirement Portfolio

Update your retirement accounts and life insurance beneficiaries. Consult HR about your 401(k) or pension. If these were acquired during the marriage, they might be considered community property, and a QDRO could be required for your spouse’s retirement plan.

5. Determine Your Monthly Expenses

List your fixed monthly expenses (food, utilities, mortgage, insurance, etc.) and lifestyle costs (vacations, entertainment, clothing, memberships). Subtract these from your income. If your spouse will need financial support for themselves or the children, factor that in.

6. Create Your New Financial Plan

After deciding how to divide expenses with your spouse, especially if you have children, it’s time to reorganize your finances. Whether you have a financial advisor or not, creating a new economic plan is crucial to maintaining a healthy economy and staying focused during this emotional time.