There is more to divorce than just saying goodbye to your spouse. It also includes tons of paperwork concerning your money. Many experience a hard time getting their finances together, especially when dealing with the physical and emotional toll of separation.
Sorting out everything from credit card and utility bills to other shared expenses is challenging during this trying time. Fortunately, there are things you can do to get your cash organized despite ending a marriage.
Putting together accurate information about your finances is necessary as you start going through the motions. For example, if your expenses and income vary from month to month (e.g. you future ex-spouse earns on commission that is high on one month and low the next), you will need a year’s worth of bank statements. If not, then one or two bank statements will do.
Picking up expenses paid by cash requires getting receipts for all of your transactions in a week. This gives you a rough idea of how much you spend. If you use credit cards to make most of your payments, make sure to gather all statements.
Add Them All Up
Add up all of your income after gathering the data. If your household’s income varies, add up all accumulated deposits for the year and divide the sum by 12 months. The result reflects your average monthly income.
Pay periods hit the bank on different schedules. In this case, GodfreyLawyers.com, a family law and bankruptcy lawyer in Ogden, suggests checking some of your bank statements and adding up all the deposits from two to three months. Divide the result by the number of statements you currently have.
Determine What you Spend
The courts often give a form with categories for mortgage/rent, food, and utilities. When you fill out these forms, categorize all of your purchases. If you need an idea on your total expenditures, just add them all and multiply by 4 (the number of weeks). If your expenses are the same each month, just do it for the appropriate timeframe.
For a financially secure future despite the divorce, you need to know where you are now. To get things done faster, take these steps and stay on top of your finances.