Divorce can bring significant financial changes, making preparation an important part of the process. Before filing for divorce in Florida, taking time to understand your income, debts, property, expenses, and financial obligations can help you make informed decisions and avoid unnecessary surprises.

For individuals considering divorce in Fort Lauderdale, financial preparation can also make it easier to discuss property division, support, and other financial issues with an attorney. At Fischler, Friedman, & Bennett P.A., we provide legal assistance to individuals and families in Fort Lauderdale who are navigating divorce and other family law matters.

Gather Your Important Financial Documents

One of the first steps when financially preparing for a Florida divorce is gathering documents that provide a complete picture of your finances. Having organized records can help identify marital assets, debts, income, and expenses.

Useful documents may include:

• Recent federal income tax returns
• Bank and credit union statements
• Credit card statements
• Mortgage and home equity loan records
• Retirement and investment account statements
• Pay stubs and other proof of income
• Business ownership records
• Insurance policies
• Vehicle titles and loan documents
• Records concerning significant personal property

Florida divorce cases require financial disclosure, and accurate documentation can help make that process more manageable.

Understand Your Marital Assets and Debts

Florida generally follows an equitable distribution system when dividing marital assets and liabilities in divorce. This does not necessarily mean every asset and debt will simply be divided equally in every situation.

Before filing, create an inventory of property and debts accumulated during the marriage. This may include a home, vehicles, retirement accounts, investments, business interests, credit card balances, and loans.

It is also helpful to identify property you believe is nonmarital, such as certain assets acquired before marriage or received individually through inheritance or gift. Whether an asset is marital or nonmarital can become complicated when funds or property have been mixed during the marriage.

Review Your Credit and Individual Accounts

Knowing where your credit stands can be valuable before beginning a divorce. Consider reviewing your credit reports to identify joint accounts, individual debts, and obligations you may have overlooked.

If appropriate, establishing financial accounts in your own name can also help you prepare for greater financial independence. However, avoid transferring, hiding, selling, or spending marital assets simply to keep them away from your spouse. Financial transactions made shortly before or during divorce can receive scrutiny and may affect the case.

Create a Realistic Post-Divorce Budget

Living expenses can change considerably when one household becomes two. Developing a realistic budget before filing for divorce can help you understand what your finances may look like after separation.

Consider expenses such as housing, utilities, groceries, transportation, insurance, healthcare, childcare, debt payments, and other recurring costs. If you have children, account for school expenses, activities, clothing, and other child-related needs.

A detailed budget can also provide useful information when addressing issues involving child support or alimony.

Consider the Financial Impact of the Marital Home

For many Fort Lauderdale couples, the marital home is one of their most valuable assets. Deciding whether to keep or sell the property involves more than determining who wants to remain there.

Consider the mortgage payment, property taxes, homeowners insurance, maintenance expenses, association fees, and other ownership costs. A person who can afford a home while married may find that maintaining it on a single income is considerably more difficult.

Before making decisions regarding the marital residence, consider both its value and its long-term affordability.

Review Retirement Accounts and Investments

Retirement accounts can represent a substantial portion of a couple's marital property. Depending on when contributions were made and other circumstances, some or all of a retirement account may be considered marital property.

Pensions, 401(k)s, IRAs, brokerage accounts, and other investments should be included when reviewing your financial situation. Dividing certain retirement benefits may require additional legal procedures, so these assets should not be overlooked during divorce planning.

Think About Taxes and Insurance

Divorce can affect taxes, health insurance, life insurance, and other financial arrangements. Filing status may change, and decisions concerning property or support can carry tax consequences.

Health insurance is another important consideration, particularly when one spouse receives coverage through the other's employer. Understanding your options before the divorce is finalized can help prevent unexpected gaps in coverage.

Because tax consequences vary depending on individual circumstances, consulting an appropriate tax professional may also be beneficial.

Avoid Major Financial Decisions Without Legal Guidance

When divorce appears likely, it may be tempting to close accounts, move money, sell property, or make other major financial changes immediately. Such actions can create complications, particularly when marital property is involved.

Before making significant transactions, consider discussing the situation with a Florida divorce attorney. Legal guidance can help you understand how a proposed financial decision could affect property division, support, or other aspects of your divorce.

Speak With a Fort Lauderdale Divorce Attorney

Preparing financially before filing for divorce in Florida can give you a clearer understanding of your circumstances and help you approach important decisions with better information. Gathering records, identifying assets and debts, reviewing your budget, and considering your future expenses are useful steps to take before the divorce process begins.

At Fischler, Friedman, & Bennett P.A., we provide legal assistance to the Fort Lauderdale public in divorce and family law matters. If you are considering filing for divorce in Florida, speaking with a Fort Lauderdale divorce attorney can help you understand your legal options and prepare for the financial issues that may arise.