Most Common Financial Mistakes Made During Divorce
As you go through the divorce process, there are many decisions you’ll need to make that will have a major impact on your finances. You need to be extremely careful with how you make these decisions so that you don’t risk jeopardizing your financial wellbeing.
The following are few of the most common financial mistakes made during divorce:
- Underestimating expenses. When you get divorced, you need to change the way you spend your money, and it’s easy to underestimate just how expensive it can be to live by yourself. This mistake can easily be avoided by writing down a thorough budget that includes all of your expenses.
- Assuming equal division means fair division. Your assets’ values are not solely defined by their market value. So dividing property in your divorce agreement based on the financial worth of each asset isn’t the best way to go. You need to consider other factors as well, like whether you have assets that generate income, whether any assets will appreciate or depreciate in value and more.
- Forgetting debt liability. Remember: just as your marital property is divided after a divorce, so is marital debt. This means that any debts that you accrued with your spouse during the course of your marriage are both of your responsibility.
- Not considering long-term security. The asset division, child support and spousal maintenance process should all consider what your financial health will look like in future decades, and not just what is best for you in the present. You need to constantly have an eye on the future.
- Believing the custodial parent should keep the family home. While there is understandably going to be a lot of attachment to your family home, keeping it might not be the best financial decision for either party depending on your income levels.
For sound legal advice as you go through the divorce process, work with the experienced attorneys at Jakubowski, Robertson, Maffei, Goldsmith & Tartaglia, LLP.