In the eyes of the law, divorce is basically a legal process that severs the financial relationship between a husband and wife, except of course in divorces with minor children, which are about both money and children. It is a family court judge’s role to review the financial facts presented in divorce by each spouse and make binding decisions regarding the values, characterization, division and distribution of assets and debts. It is also a judge’s role to determine how financial matters will be handled post-divorce (e.g. whether a spouse will receive spousal support, alimony, maintenance, and/or child support payments).
Because the legal divorce process is so financially driven, judges, commissioners, child support agencies and spouses themselves, need detailed information about the parties’ assets, debts, income and expenses. Bank and credit card statements, mortgages, promissory notes, and details about monthly expenses and income must be exchanged, and/or given to a judge so that divorce orders and judgments may be entered.
In most cases, gathering financial data required in a divorce or legal separation can be a major pain in the you know what, especially if you, like many of us, did not regularly organize and update your records. The great news is, however, that it is the perfect time for you to get your money matters in order! “Why?”, you ask? Because most banks, credit card companies and brokerage companies offer online, year-end financial statements that can be downloaded directly into your online financial planning system. And better yet, software and credit reporting companies are offering great deals on money management systems that can make your life easier!
For example, you can find great Deals on Quicken Products+ Free Shipping! Two of my clients have convinced me that this is the best way to keep on top of things during divorce, so I’m going to begin using the software for my own personal and professional needs. You can also download a succinct summary of your credit history using Fico Scores/Reports.
If you are on a strict budget (which is a great idea at the moment) you may want to try Free Quicken Online – Quicken Online can send you a text message with your account balances, use our free Money Matter tools, or visit your local library and see if they have any programs available for your use.
And, because it is best to live by example, I am going to download Quicken now and begin making part of my daily rituals. Good luck! Update: I signed up for the Free Quicken online service for my personal accounts and have already started using it! Fingers crossed that it makes my 2009 money management goals much easier!
This article is not legal advice. You should consult an attorney if you have legal questions that relate to your specific divorce.
