Thinking About Divorce? 5 Financial Moves to Consider Before You File
Introduction: Financial Preparedness Before You File
July is a natural time for reflection. The year is halfway over, and for many professionals and business owners, it can be a season of reassessment. That might mean evaluating personal goals, adjusting financial plans, or, in some cases, making decisions about the future of a marriage.
If you are considering divorce, especially one involving significant assets, thoughtful preparation is essential. Divorces are complex, not just emotionally, but financially and legally. The moment a complaint is filed, a formal legal and financial timeline begins. Gaining clarity on your financial situation beforehand is a critical first step.
This guide offers a practical roadmap for organizing your financial life before initiating the divorce process. Whether you are a business owner, executive, or managing a significant portfolio, these five steps can help you approach the process with greater confidence and organization.
1. Understand How Financial Timing Affects the Marital Estate
In Michigan and many other states, the date of filing can be a significant reference point for courts when evaluating marital assets and debts. It is important to be aware of how the timing of a filing might intersect with your financial calendar.
For example, upcoming financial events like a bonus payout, equity distribution, or an annual business valuation can become key factors in a divorce proceeding. A court has discretion in determining how to value and divide assets, and understanding the financial landscape is a key part of building a comprehensive legal plan. Discussing your complete financial picture and any anticipated events with your attorney will help you make informed decisions.
2. Gather and Organize Key Financial Documents
One of the most empowering steps you can take is to enter the process well-organized. That starts with documentation. We recommend gathering and making copies of the following essential documents:
Tax returns from the past three to five years
Bank statements for all personal and joint accounts
Investment and retirement account statements
Mortgage documents and property deeds
Documentation of business ownership and recent valuations
Credit card statements and outstanding debts
Life insurance policies, prenuptial or postnuptial agreements
Pay stubs or proof of income
Loan agreements and any other financial obligations
The goal is to ensure you and your attorney have a complete financial picture, not to remove or hide original documents from your spouse. Ideally, save copies to a secure, private cloud account from a personal device. The sooner you organize this information, the better positioned your attorney will be to provide guidance based on the full financial picture.
3. Avoid Major Financial Moves
In the months leading up to a divorce, resist the temptation to make significant changes to your finances. Any major financial moves, such as transferring large sums of money, selling assets, or opening new lines of credit, can raise questions and complicate the process.
Judges expect financial transparency. Even if your intent is innocent, these actions can be perceived as an attempt to hide or improperly shield assets from division. To maintain a strong and credible legal position, avoid the following without first seeking legal counsel:
Liquidating accounts or moving money without legal guidance
Transferring ownership of property or business assets
Making large purchases or "gifting" money
Changing insurance beneficiaries or titling new accounts in someone else’s name
If you believe changes are necessary for personal safety or logistical reasons, speak with your attorney before taking action.
4. Secure Your Personal Information and Communication
Before filing, ensure you have secure and private access to your personal accounts and communications. This includes:
Personal email accounts
Personal online banking and financial accounts
Password-protected personal files
For any joint accounts or shared technology, you should proceed with caution. Avoid changing passwords or taking any action that would lock your spouse out of accounts to which they have a legal right of access, as this can create significant complications. Discuss the proper handling of any shared accounts with your attorney.
5. Build the Right Professional Team
Complex divorces are not DIY projects. They demand a team of professionals who understand the nuances of family law, finance, and negotiation.
At a minimum, your team may include:
A family law attorney who specializes exclusively in high-asset and complex cases
A CPA or forensic accountant with experience in marital asset division
A financial planner or advisor to help model future scenarios
A business valuation expert if you or your spouse own a company
At Thacker Sleight, our attorneys collaborate with a network of trusted professionals to ensure every detail is addressed. We work to bring the right experts together to create a seamless, cohesive approach that reflects your values and long-term goals.
Conclusion: Prepare Early, Proceed with Clarity
Preparing for divorce is not just a legal process; it is a major life and financial transition. The earlier you begin gathering information and building your support team, the more confident and informed you will feel.
Your financial future deserves the same careful planning you would give to any major business or investment decision. The decisions you make now will have a lasting impact for years to come.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. The information provided is not intended to create, and receipt of it does not constitute, an attorney-client relationship. You should not act or refrain from acting based on this information without seeking professional counsel specific to your situation.
Ready to protect what you’ve built?
If you are considering divorce and want to ensure you are well-prepared, we invite you to schedule a private consultation with our team. At Thacker Sleight, we bring expertise, discretion, and a results-driven mindset to every case.