Financial planner reveals the five things to know before you get a divorce – including NOT asking your family or friends for money advice

A financial planner has warned divorcees not to discuss their finances with their friends and family while sharing her top tips for handling a legal separation.

Marissa Reale, who specializes in helping women get the best deal out of a divorce, revealed the five things every divorcing couple should know in a TikTok video.

This includes not listening to the advice of loved ones, because even though they may have your best interests at heart, “every situation is different,” she explained.

Her first tip was not to make important decisions without thinking about the long-term consequences.

“It’s easy to get caught up in this and agree to things that don’t make sense to you in the long run,” said Reale, who has more than 15,000 followers on TikTok and has advised more than 300 clients.

Reale shared her top five tips Americans should know before getting divorced

“Number three is that every woman should have a budget,” she continued. “This will help you get more alimony and more child support, and also help you know what your needs are in the future.”

Her fourth tip is to get financial advice before hiring a lawyer.

“Try to hire someone like me,” she said, “a financial advisor who can help you make financial decisions and who knows what to negotiate.”

Finally, she said, “If possible, settle out of court using meditation or arbitration. This saves you time and money.’

Reale previously advised that women going through divorce are too quick to take over the home in a settlement and should consider splitting their ex-partner’s 401(K) instead.

She said financial illiteracy is the core issue most divorcees face — meaning they often settle for immediate benefits rather than considering the long-term plan.

According to the latest available data, in 2021 there were 689,308 divorces in 45 U.S. states, with couples spending an average of $7,000 to dissolve a union.

And the consequences can be disastrous for women. A 2018 survey by online marketplace Worthy found that 44 percent of women at various stages of the divorce process had debts they were paying off.

Financial planner Marissa Reale specializes in helping women get the best deal out of a divorce

Separate figures from the U.S. Government Accountability Office special report to the Senate show that women’s household income falls an average of 41 percent after a marriage divorce.

“Women often want to take the family home in a divorce because of the comfort aspect,” Reale told DailyMail.com.

‘But the problem is that the house requires more maintenance and mortgages. I always recommend only taking the house if maintenance takes up less than 30 percent of your income.’

Often, Reale adds, divorcees overlook the value of asking to split their ex’s 401(K) because they’re too focused on their immediate safety.

This is especially important for couples who have children, as one partner – usually the woman – is forced to give up work while their children are still young. As a result, they will stop paying into a 401(K).

She also advised what to look out for if you suspect that your partner is hiding financial assets.

She revealed that the tax return is the “first place to start” and where to look to find out what assets you own and where they are located.

“The first place you’ll want to start with is Schedule A itemized deductions,” she said, “to help you identify unlisted assets or income that you may not be aware of.”

‘Here, for example, you have to pass on the mortgage interest, so that you may come across a rental property that you did not know about before.’

She explained that the taxpayer must report gambling losses or winnings here. “If your partner is gambling, you can see it here too.”

Reale, who has more than 15,000 followers on the platform and has advised more than 300 clients on how to get through a divorce, revealed where to look in a tax return to find hidden assets

The next place she recommends looking is Schedule B.

‘On this form you will see any interest or dividends. If there are dividends, that means there are also investment accounts,” she explained.

Schedule C is important, she added, because this is where you need to report depreciation.

Schedule C shows a company’s profit or loss, and depreciation should normally be added back to income. Schedule C shows you if there are additional assets in a company that you may not be aware of.

“Finally, the capital gains and losses will show up when you sell a stock, a bond, or anything else that causes an investment loss or investment gain.”