Six steps to take when considering separation:
1. Face your finances. Know the actual amount of your current household income from all sources. Itemize each debt you currently have, including student loans, car payments, mortgages and credit cards. Know your actual monthly expenditures. Track your spending for at least one month, preferably three months, and see where your money is actually going. Track each and every expenditure, no matter how small. The Every Dollar app is free and easy to use.
2. Create a realistic cash flow plan.
3. Do not incur any more debt.
4. Investigate the costs associated with moving, including rent, utilities and deposits.
5. Gather documentation proving income, assets and debt. This includes bank statements, IRA statements, 401(k) statements, pay stubs for at least the past three months, tax returns for the past two years, credit card statements for at least the past three months, mortgage payoff amount, auto loan payoff amount, student loan payoff amount, along with documentation of any other assets and debt that you might have.
6. Schedule a consultation with a family law attorney to learn your marital rights and obligations and explore the various processes available for reaching a workable settlement.