Many divorce filings focus primarily on the paperwork you need to submit to the court. However, more Tennessee residents now look for ways to protect their financial health. Here’s some paperwork you may need to do so.
An accounting of debts and assets
Most couples commingle their assets, meaning they have joint credit card and checking accounts and apply jointly for loans. However, there are also individual accounts. Examples might include retirement savings and utilities.
Some couples have more complicated debts and assets, such as:
- Tax debts
- Investment income
- Business income and expenses
Create a tentative budget for yourself
With debts and assets in hand, you likely have a good idea what you owe, what your spouse owes, and how much you owe jointly. The joint accounts could become bargaining chips in your divorce.
Your new budget should generally focus on housing expenses, what you need to spend to go to work, and what it takes to handle your bills. Your new budget becomes the amount you might work with during your divorce filing. Having this information lets you take on some joint debts if your spouse agrees to take on others.
Prepare yourself for a few lean months
After filing for divorce, it takes a while for the finances to settle. For example, selling a house and splitting the equity takes time. Therefore, focus your spending only on the necessities to prevent another filing: post-divorce bankruptcy.
Protecting your rights during asset and debt negotiations is a good idea. Talk to an attorney who might give you some input on how to handle this aspect of the procedure.