Breaking up is never easy and going through a divorce is especially tough – even more so if you are going through it alone.   It is important to surround yourself with a team who can help you navigate the many decisions ahead, primarily legal and financial. (And a few good friends to lean on is always a plus!)  Getting organized, protecting yourself and your assets, and creating a good strategy are key.

I run into people every day who are experiencing separation and divorce.  Yesterday I met with Sandra, who is just beginning the process of divorce and she shared her feelings of being overwhelmed with me.  ”So many big decisions to make, where do you start?” she asked.  And of course, tons more questions surround the decision process.

Divorce is emotional, no doubt…but there is business to tend to… so if you are in a coma, it’s time to pull yourself out and get to work.   Where do you start?  Here are some first steps in a series:

• Get organized! Pull all your files and financial information together.
• Have your credit pulled so you are able to resolve any disputes prior to the divorce being final.
• Place a fraud alert on your credit profile to prevent unauthorized credit to be obtained.
• Open new individual checking, savings, credit card, and investment account in your name.
• Notify and close all joint credit cards upon filing.
• Ensure access to children’s college funds.
• Create a household budget that includes your future PITI, school tuition, transportation, food, utilities, entertainment, etc.
• Protect your health care coverage.
• Protect your home/auto insurance.
• Change your cell phone to an individual plan…yikes! you don’t want to discover it has been disconnected.
• Obtain the last 3 years of filed tax returns (all schedules and pages) and have them audited by a CPA to prevent any future tax audits. If no joint return has been filed or is in the process, consider filing separately to avoid penalties. Document all tax payments.
• Change your beneficiaries on any policies owned by you.
• Keep separate property separate.
• Request that temporary support be given to you via check and acknowledged for what purpose.
• Negotiate up front how costs associated with the divorce will be paid.  Consider requesting they be paid from the estate and not family cash flow or savings.

The decision of divorce may be one that was long in the making or completely unexpected. In order to protect yourself and your assets, coming up with a plan of action can provide organization in the chaos divorce typically brings.  You don’t have to go it alone, surround yourself with a team who can provide wise counsel.  Ask for help!

Power to Prosper!

Elizabeth Rose