How to financially prepare for divorce if your spouse is the breadwinner? (Divorce finances)

Originally published 02/27/2023

Going into a divorce when your spouse is the primary earner in the family is difficult and scary, but there are a few things you should do in preparation of a divorce.

1. Credit Card: Make sure you have access to a credit card that your spouse cannot close.

2. Emergency funds: Try to make sure you have access to emergency funds to pay your necessary expenses. Once the papers are filed, there is a strong possibility that your spouse will become more restrictive in the funds that are available to you for your expenses.

3. Know your finances: Try to learn as much as you can about your family’s finances as you can. Specifically, you should be able to identity the banks that you use, the loans you have (cars, mortgage, HELOC, ect.), investor(s) or brokerage firms used, credit cards or other open revolving accounts. If you can get internet access to these accounts and/or account statements this would be helpful, but you should at least know the accounts.

4. Credit Report: Get a copy of your credit report.

5. Accountant: Find and consult with a CPA or a certified Divorce Financial Analyst about your finances.

6. Real estate agent: Find a real estate agent that you can trust. Whether you plan to keep the marital residence or sell the residence you need to talk to someone who knows the market and can advise you on the benefits and costs of both options and appropriately plan for both options.

7. Counselor: I would encourage anyone going through a tough event, especially divorce, to see a counselor to help you take care of you. This is not a marriage counselor, but a counselor just for you. However, please be mindful that anything you say to a counselor may end up being used in court, but as long as you are working on improving you this should not be a concern.

The bottom line is that divorce is one of the most difficult things most people will have to deal with in their life and getting informed and having a support system to help you is really important. So, when you start heading down this road it is important for you to take inventory of what you have and what resources (including people) you have available to you for support throughout the process because divorce is not a sprint, but a marathon.