Thinking About Divorce? 5 Financial Moves to Make Before You File
Introduction: The Strategy Starts Before the Filing
July is a natural time for reflection. The year is halfway over, and for many high-income professionals and business owners, it becomes 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, timing and preparation are everything. High-net-worth divorces are complex, not just emotionally, but financially and legally. The moment you file, a legal and financial timeline is set in motion. That’s why it is critical to get ahead of it.
This guide offers a practical roadmap for preparing yourself financially before filing. Whether you are a business owner, executive, or managing a significant portfolio, these five financial moves can help you protect your interests and avoid costly mistakes.
1. Understand the Timing of Your Filing
Most people do not realize how much the timing of a divorce filing can affect the outcome. In Michigan and many other states, the filing date often marks the point at which courts begin evaluating the status and value of marital assets, though judges may use discretion depending on the circumstances. That means if you are approaching a bonus payout, equity distribution, or year-end business valuation, the timing of your filing could have a direct impact on how those assets are treated.
For example, if your business is expected to grow significantly in the coming months, filing before a valuation peak could affect how the court assesses its worth.
This consideration is especially important for executives with deferred compensation, business owners with seasonal income, and professionals managing complex financial portfolios.
2. Gather Financial Documents Before the Process Begins
One of the best ways to feel empowered in the early stages of a divorce is to come in prepared. That starts with documentation.
Here is a list of essential documents to gather:
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
Ideally, gather both digital and hard copies. If you are concerned about discretion, save them to a secure personal cloud account and use a private device. The earlier you start gathering this information, the better positioned your attorney will be to craft a strategy based on the full financial picture.
3. Avoid Major Financial Moves
In the months leading up to a divorce, it may feel tempting to “clean up” your finances. Resist that temptation. Any major financial moves you make, transferring large sums of money, changing account ownership, selling assets, or opening new lines of credit, can raise red flags and complicate the divorce process.
Judges often frown upon any financial activity that appears to manipulate marital assets or reduce transparency. Even if your intent is innocent, these moves can be perceived as an attempt to hide or protect assets from division.
To stay in a strong legal position, avoid:
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 Access to Information and Communication
Before filing, ensure that you have complete and private access to your critical accounts and communications. This includes:
Email accounts
Online banking and financial accounts
Credit reporting services
Password-protected files
Medical records and insurance
Create new logins if needed and update passwords on sensitive accounts. If you are currently using shared technology, consider securing a personal device. Your privacy during this time is essential, especially if tensions are high or you anticipate a contested divorce.
Also, avoid discussing your intentions on shared digital platforms or text threads. Confidentiality is not just a courtesy; it is a strategic necessity.
5. Build the Right Team Around You
High-stakes divorces are not DIY projects. They demand a team of professionals who understand the nuances of family law, finance, and negotiation strategy.
At a minimum, your team should 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 across disciplines to ensure every detail is covered. We do not operate in silos. Instead, we bring the best minds together to create a seamless, strategic approach that reflects your values and long-term goals.
Whether it’s understanding the impact of executive compensation, preparing for spousal support negotiations, or navigating business interests, our approach is built around clarity and sophistication.
Conclusion: Prepare Early, Proceed Confidently
Preparing for divorce is not just a legal process. It is a financial strategy, a life transition, and often a defining moment. 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 a business transaction or investment decision. The stakes are high, and the decisions you make now will echo for years to come.
If you are considering divorce and want to ensure that your financial strategy is sound, we invite you to schedule a private consultation with our team. At Thacker Sleight Law, we bring expertise, discretion, and a results-driven mindset to every case.
Ready to protect what you’ve built?