9 February 2018
 Categories: Law, Blog

Separation and divorce can be painful and overwhelming. This emotional distress can cause one to overlook the practical issues that must be handled, particularly in relation to finances. Often, handling the financial matters during the break-up period is regarded as cynical and cold. However, \pragmatism can make a significant difference in your and your family's future. Here are some essential tips to help you prepare for the financial consequences of a divorce or separation.

Obtain Copies of Your Financial Details

You should collect the relevant information on your financial status immediately. Under ideal circumstances, you should obtain the documents with useful data that will provide insight into your personal and family financial status. The important details include bank statements, superannuation accounts, investment portfolios and salary information. You should also have the details on your mortgage, car valuation data, loan information and insurance documentation. If you have any compensation claims or inheritances within the family, you should also gather the evidence and place the copies in a secure place.

Calculate Your Future Expenses

You should understand your potential monthly and annual expenses after getting a divorce. You should be aware that there will be a major difference in your financial situation after separating from your partner. If you do not make correct calculations, you will not be able to negotiate during the financial settlement process. As a result, you and your children could be harmed. You should evaluate the cost of running an independent household and caring for your children. Where possible, you should obtain evidence that will support your data, such as receipts and relevant bank statements. You should also note that having a projected budget for the future can help in preparing you for the transition.

Consult an Experienced Lawyer

You should not overlook the importance of legal advice when handling your finances in preparation for a divorce. It is not easy to be clear-minded during the painful period of separation. If you are not objective, you might take illegal actions such as hiding assets, which could harm you during the settlement negotiations. When you have a good divorce lawyer, you will get the best advice on protecting yourself and your family without taking unlawful paths. The expert will be objective on your behalf. Moreover, your legal advisor will look through any agreements prepared before the divorce is finalised. After all, it is not uncommon for people to make interim arrangements which cause harm during the final settlement.