How to prepare financially for divorce

If the writing is on the wall and you know divorce is in your future, you should begin preparing for the inevitable. You've got to take responsibility for your financial future immediately.

If possible, start listening to Dave Ramsey's the Money Game. It's a syndicated radio talk show. It basic, (un)common sense information about money. He's all about having a budget (and sticking to it) and having a plan to get out of debt as fast as possible. He's all about NOT buying a new car or too much car. Sell the car if it's too much and buy a $1,000 - $2,000 "beater" until you can afford something nicer. Eat rice and beans, beans and rice for a while if necessary. Get a part-time job if necessary. Have a garage sale and get rid of everything you don't absolutely need. Whatever it takes to get control of your finances.

You should both agree to cancel all of your jointly owned credit cards and get separate ones. This will help avoid you becoming responsible for your spouse's irresponsible spending habits, which you could get stuck having to pay back. Failing to do this could destroy your credit and create more animosity between the two of you, which is exacerbated when you have children together.

Close joint bank accounts, too, and open up a separate account at a different bank. If you're still on talking terms, agree how you're going to divide your money and debt. Talk about all bills, debts, assets, and income. Put this in writing and if you don't have it notarized, have at least two witnesses sign it. Doing this will protect you in court if it ever becomes necessary.

Tell your employer that you want to stop contributions to combined 401k accounts and/or pension plans. This simplifies things until you can agree how everything is going to be split up.

If you tell your spouse to handle everything you may be left with nothing.

Do everything in your power to stay employed or get employed. If you're not going to receive alimony (or child support if you have children), you've got to have a plan in order to make enough money to support yourself and your family. If you're getting along, ask your future ex-spouse to help you until you can get on your feet. If you're not getting along, have your lawyer do this for you.