When couples in New Mexico determine it is time to end their marriage, finances often determine their next steps. The divorce process is often thought of as a complex and expensive life event. When couples focus on the money, this can lead to additional disputes and could prolong the process and add expenses. This is especially true if the divorcing couple is unable to work together during the property division phase.

Even if an individual finds it difficult to organize their ordinary life and finances during their marriage, when it comes to filing for divorce and going through the process, divorcing spouses need to master the organization process. This step is crucial and could help save them time and money in the long run.

This important step will also put them in a better financial position, so this step should not be put off or avoided. People who understand their financial situation can better plan for their post-divorce future. This might also be the evidence needed to prove that a spouse requires alimony during the divorce process and for an amount of time after the divorce is finalized.

Knowing what marital assets and personal assets exist will help move the property division process along. This will also help disputing spouses reach a more equitable divorce agreement. This is especially true if one spouse did not bring much personal property into the marriage, has a lower income and would greatly benefit from maintaining some of the marital property such as the home and furniture within it.

The last financial step a divorcing spouse should take is opening up separate accounts. This will not only prevent comingling of funds but will also promote a better individual financial plan right away. If a spouse is used to using a shared account, they are not used to seeing just their individual income in an account. Having their own account will allow them to make a realistic and detailed future plan during the divorce process as well as post-divorce. This will also serve to establish the amount of spousal support they require to move on after the divorce is finalized.

Dissolution is not an easy process to go through. People in this situation should address all of the issues properly so that they can work through the dispute the best way possible.

Source: Huffington Post, “Divorce Confidential: The Importance of Being Financially Savvy During Divorce,” Caroline Choi, April 18, 2014