I’m filing for Divorce

I’m filing for Divorce What do I do now? I said it, I’m getting a divorce. Now What?

OKAY, I said it. I’m getting a divorce. NOW WHAT? First understand you are not alone. Hopefully you have not come to this decision quickly and have weighed all options and possibilities. It is very important to be able to hold your head high and say you did everything you could to make this work. There is a long painful road ahead of you and it’s going to get worse before it gets better. But it will get better. If you have determined divorce is unavoidable, the following steps have been put together to help you understand what, why and when. What needs to be done, Why it needs to be done and When you should be doing it.

Find someone to talk to: Many people have family, friends or a therapist they have been able to speak with when weighing their options. Just understand people have their own opinions and may have a hidden agenda when you disclose personal information. A neutral third party trained in human psychology can be extremely helpful to both you and your children before, during and after divorce.

2. Hire an attorney: • You should interview multiple attorneys and choose one that listens to you, makes you think and makes you feel like they would work in your best interest at all cost. Also be clear on fees and make sure you are able to afford their representation.

3. Know where you stand financially: You may have an idea but you need to get the facts. You need to know what is owned and what is owed. You will need to know this for future negotiations. Real Estate, financial accounts and automobiles are commonly split equitably. Other assets like pension plans, inheritances and artwork are more negotiable. Real Estate owned – Get an appraisal, not an opinion of value. An appraiser will look for homes comparable to yours that have sold within the past 180 days. This value minus your mortgage balance can be used to show how much equity you currently have. Keep in mind; if your divorce states you are forced to sell, the best way to sell is with a Realtor. A Realtor can also show you what other home are currently on the market and what you would be competing with when you list. Your Realtor will also review with you a net sheet which shows you the costs associated with selling so you have a clear understanding of what you can expect to end up with after the sale. Marital Debt – It really doesn’t matter whose name is on the debt. Commonly this debt is split based on who is financially able to pay the debt. The quickest way to determine your debt is to pull your credit report. You can get a free annual credit report by visiting www. annualcreditreport.com

4. Proof of income: You will need to show income for both you and your spouse. Salary or hourly employment – Pay stubs, W2’s & Tax Returns Self employment – Bank and financial statements, tax returns. It may be difficult or impossible in some cases to determine true self employed income. Just get everything you can to your attorney and let them do the best they can.

5. Make an “after divorce” budget You need to be realistic about what this looks like after you reduce to single income. Use your best guess on things you may not know. This will also help you when negotiating a settlement. • 6. Establish credit in your name: Often people are left with no personal credit rating after divorce. You should open up credit line in your name only. Be careful not to run up your debt. Maintain a minimal balance you can pay off monthly.

7. Evaluate joint financial accounts: It is very common for spouses to deplete or diminish financial accounts after the word divorce is mentioned. You should consult you attorney before you act. It is possible they would advise you to protect yourself by withdrawing half of the available funds and placing it in an individual account. Do not spend these funds foolishly and keep good record of needed spending. These records can be called upon when in court. Again, consult your attorney before acting.

8. Close all joint accounts: When possible, pay off and close all joint accounts before separating. Closing them before divorce proceedings could prevent an angry spouse from using the account and running up debt you may be accountable for. If you have funds available, you could call up creditors and negotiate a settlement less than the balances owed. You want a letter from themshowing the account is paid and they are not going to report negatively to the credit reporting agencies. If you can’t pay off or settle joint accounts, you should have them frozen. You will not be able to use them but it will again prevent an angry spouse from running up debt you may end up being accountable for. Make sure all accounts are being paid on time. Even if it is a debt you feel may end up being your spouse’s responsibility. You do not want your credit to be impacted negatively by late payments.

I hope this brief overview of what to do when facing divorce has helped you in some way. Your First Home Team has assembled a list of trusted partners to assist you in every step. Therapist, Attorneys, Appraisers, Realtors, Mortgage, Home Inspectors, Title Companies

I’m filing for Divorce