Divorce will likely have a pronounced effect on your economic situation. If you’re like most married people, you’ll need to make the transition from joint to separate finances. Accomplishing this efficiently requires taking certain steps before the divorce case starts.

Here are some important steps to take to prepare financially for divorce:

1. Take stock of your assets and debts — You should gather together all current financial documents, such as bank statements, retirement plans, tax returns, investment portfolios and credit card statements. Also, have in hand real estate documents such as deeds and mortgages. If possible, get copies of documents pertaining to assets held in you spouse’s name alone, since these may be divisible as community property.

2. Evaluate your income and expenses — Review your current salary, interest and investment income and other revenue sources. Examine what you currently spend monthly on housing, utilities, food, healthcare and other necessities. If you have children, consider the costs related to child care, school fees and healthcare.

3. Create a budget — A post-divorce budget should account for all living expenses, such as housing, groceries, transportation and healthcare, based on your projected single income. You should also include how much you’ll need for savings and retirement planning.

4. Check your credit — Obtain your credit report and address any errors or issues that may negatively affect your score. If you and your spouse do not have individual credit card accounts, now is the time to open one. Building and maintaining your own credit will help ensure that you have access to borrowing when you need it after the divorce.

5. Close joint accounts — This includes joint bank accounts, credit cards and any other shared equity or debt accounts. If closing them isn’t possible immediately, consider freezing them to prevent further joint spending. This can protect you from being held responsible for debts incurred by your spouse during the divorce process.

6. Meet with financial and legal advisors — Consulting with a financial advisor can help you better understand ownership portfolio and options. An experienced Arizona divorce attorney can ensure that your legal interests are protected, especially in matters of property division.

Clark & Schloss Family Law, P.C. in Scottsdale, Arizona dedicates its practice to family law. We have a wide range of experience in the field and are here to answer your questions. Please call 602-789-3497 or contact us online for a free initial consultation.