PREPARING FOR DIVORCE: A FINANCIAL CHECKLIST

Divorce is a significant decision, and proper preparation regarding your financial matters is essential. Here’s a comprehensive financial checklist to guide you through the pre-divorce preparation:

Check Your Credit Report

• Visit www.annualcreditreport.com (the only authorized source for free credit reports) to obtain a copy of your credit report.

Secure a Credit Card in Your Name

• Establish your individual credit history by obtaining a credit card in your name. Waiting until after the divorce can make this much more challenging esp. if you don’t have a steady source of income.

Open a Solo Bank Account

• If all your bank accounts are jointly held with your spouse, create a personal bank account in your sole name.

Gather Financial Documents

• Collect all of your financial records, including:

• • Bank account statements
  • Brokerage account statements
  • Retirement account statements
  • Credit card statements
  • Loan statements
  • Mortgage account statements

• Maintain copies outside your home, with your attorney, a trusted friend, and/or family member.

Order/Copy Income Tax Returns

• Make copies of at least the last 2 years’ income tax returns, including all related documents used for preparation.
• Order transcripts online at https://www.irs.gov/individuals/get-transcript.

Create a Budget

• Outline your current budget and anticipated post-divorce budget to understand your financial situation.

 Document Your Possessions

• Photograph each room and all belongings of value in your house, storage units, safety deposit boxes, and any other locations. This documentation can be crucial in case of disputes over the existence of items or their location.

 Safeguard Separate Property

• If you have separate property (pre-marital, gifts, or inheritance), gather documentation.
• Collect statements dating back to the date of marriage or receipt.
• Obtain closing documents if real estate is involved.

Retrieve Paystubs

• Keep copies of recent paystubs for both you and your spouse (if possible).

Manage Family Business Records

• If you or your spouse own a business, collect the following information for the business:

• • Bank statements
  • Income tax returns
  • Financial statements

• If you use financial software such as Quicken or QuickBooks, save a backup copy.

 Consult a Financial Professional

• Seek the guidance of a financial professional familiar with Texas divorce laws to gain insight into your current financial status and potential long-term implications of asset division.

Properly preparing for divorce can help streamline the process and ensure your financial well-being. Consulting professionals and keeping meticulous records are invaluable steps in this challenging journey.