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If you're going through a divorce—or thinking about filing—year-end is a key time to get your finances in order. Before January hits, take steps now to organize important documents, review your assets, and understand how taxes may affect you.
At Johnson Law Group, we know this process can feel overwhelming. That’s why we created this simple, easy-to-follow checklist to help you finish the year with less stress and fewer surprises.
1. Gather Your Financial Documents
When you go through a divorce, you’ll need to share your financial details. Start collecting these now so you’re ready.
Key documents to find:
- Bank statements (checking, savings, money market)
- Pay stubs or income records
- Tax returns (last 2–3 years)
- Credit card statements
- Retirement account info (401(k), IRA, pensions)
- Mortgage statements and home value estimates
- Car loans or leases
- Investment accounts
- Business financials, if you own a company
Keep everything in one safe folder or digital file. This makes it easy to hand over to your attorney or financial advisor when needed.
2. Make a List of All Assets and Debts
Next, write down everything you and your spouse own—and owe. Even if you think it belongs to only one of you, include it. This helps the court or your legal team divide things fairly.
Examples of assets:
- House or property
- Vehicles (cars, motorcycles, boats)
- Jewelry, art, or collectibles
- Business interests
- Stocks or bonds
Examples of debts:
- Mortgage
- Credit card balances
- Student loans
- Personal loans
- Tax debts
Try to include the value or balance of each item. Don’t worry if it’s not exact—your lawyer can help you get a clear picture later.
3. Think About Tax Filing Status
Your tax filing status is based on your marital status as of December 31. If you’re still legally married on that date, you can file jointly—or separately as a married couple.
Things to consider:
- Filing jointly can offer tax savings, but only if you trust your spouse to be honest.
- Filing separately gives you protection if you're worried about your spouse’s income or deductions.
Also, talk to a tax pro about:
- Child tax credits and who can claim them
- Spousal support (alimony) and how it’s taxed
- Selling property and capital gains taxes
If you and your spouse sell the family home before the divorce is final, you might both qualify for a larger tax break. Timing matters!
4. Update Your Budget
Divorce often means a big change in how money flows. Start tracking your income and spending now so you can adjust.
Create two budgets:
- Your current budget (while still together)
- Your future budget (after separation or divorce)
Look at what you’ll need for housing, food, insurance, child care, and other everyday costs. Planning now helps you avoid stress later.
5. Meet With a Divorce Attorney
Even if you're just starting to think about divorce, it's smart to talk with a family law attorney. They can guide you through:
- What documents to gather
- What to do before moving out
- How to protect your financial future
The earlier you start planning, the smoother the process will be.
Final Tip: Don’t Wait Until January
The end of the year can sneak up fast. Take small steps each week to get prepared. Whether you're already in the divorce process or just starting, handling these money matters now will save you time, money, and stress down the road.
Need help with your divorce prep? The team at Johnson Law Group is here to guide you with compassion and clarity. Contact us today to schedule a consultation.
