Whether an individual is single or married, finances are something everyone must deal with. However, the financial effects of a divorce could be the worst that an individual encounters in his or her life.

Divorcing couples in New Mexico should be cognizant of their standard of living during the marriage. Understanding the finances of the marriage could help determine the financial needs of both spouses post-divorce. Additionally, taking the time to sort through the finances of a marriage does not only help spouses requesting alimony, but it also helps address other divorce legal issues such as property division.

There are seven major financial steps divorcing spouses should take when assessing their financial needs during and after a divorce. First, it is important to seek help from a financial professional, especially if he or she is unsure what documents to compile. Additionally, this could help with valuation of property, uncovering hidden assets and even determining the standard of living that both spouses were accustomed to during the marriage.

Second, all the important financial documents should be organized together. This often includes bank statements, credit card statements, tax returns, retirement account balances and the appraisals of valuable items.

Third, it is important to get a credit report. This could limit the ability to make big purchases post-divorce. This could also help the spouses to assess existing liabilities. Next, it is important to apply for a credit card to begin to establish your own credit score. Divorce could lead to a credit score drop, so it is important to start building it up.

Fifth, it is important to create a budget for a post-divorce life. If a spouse is seeking spousal support, this could help determine the amount required to meet his or her financial need. Sixth, it is crucial to review any estate plans, account beneficiaries and any health care directives. This will ensure the right people are in charge of your finances and medical if you were to become incapacitated.

Lastly, it is important to hold off on major financial decisions. This means giving yourself a waiting period after the divorce is finalized before doing something such as buying or selling a home. This could greatly impact the ability of the spouse to meet his or her financial needs, therefore also impacting alimony.

Those seeking alimony in divorce or those dealing with financial issues during dissolution should understand the options available to them. Taking the time to become knowledgeable with the process could help a spouse make informed decisions, helping him or her protect their rights and interests in the process.

Source: Yahoo! Finance, “7 Financial Steps to Take When Getting a Divorce,” Maryalene LaPonise, Accessed on Aug. 23, 2015