When it comes to divorce, two old adages are worth remembering: Knowledge is power, but ignorance is not bliss.
The vital first step to a financially-fair divorce is to get organized as soon as possible. If you know little about your family’s money situation, you must gather information and take other important financial steps:
- Copy and understand income tax returns and investment reports
- Review current pay stubs with deductions, bonuses, and expense reimbursements
- Establish a credit history in your own name
- Order a copy of your joint credit report
- Research and verify the ownership of all assets (e.g. stocks, bonds, annuities) and how they are registered
- Review life, medical, and disabilitiy insurance policies
- Understand employee benefits summaries, mortgage terms on the family home, vacation and rental properties
- Clarify the terms of pension and profit-sharing plans
This level of organization will help your advisors be more efficient with your time and may save you money in the long term. It also will begin the process of empowering you with financial decisions and allow you to control your divorce.
It will also help pave the way for a new beginning, setting new life goals worth pursuing and a release of the emotional baggage of the past. When women protect themselves in divorce, they feel engaged in many other areas of their lives; ultimately, they move forward into a powerful financial future and a secure life.