Divorce proceedings are fraught will sorts of financial peril, which is why many people filing for divorce turn to a divorce attorney for some guidance during the separation process.
Even if you have an attorney, you should still educate yourself about the financial pitfalls that are inherent in many divorce negotiations. This blog post provides and overview of financial mistakes to avoid in your divorce.
First, after the long, emotional journey that often accompanies divorce, some people simply give up and give away too much money.
Experts caution divorcees to remain steadfast in their pursuit of a solid financial deal. Many men and women who look back at their divorces and wonder why they agreed to certain concessions when they didn’t have to.
The second mistake many couples make is assuming their debts are paid.
A common error happens when one spouse signs a house over to the other spouse. If the person forgets to remove his or her name from both the title and the mortgage, he or she might be liable for payments if the other spouse falls into debt. The bottom line is that divorcing couples should pay close attention to jointly held debts and they should also remember to close all accounts for which they share joint liability.
Third, couples should prepare before filing for divorce so that they don’t waste time and court fees.
Creating a set plan with a divorce attorney may help reduce costs in the long run.
Fourth, divorcing couples should honestly evaluate their budgets and not assume that they’ll be able to live the same lifestyle that they had during the marriage.
Lifestyle changes can be difficult, but they may be necessary, especially shortly after a divorce. People leaving a marriage should create a strict budget and stick to it. Living in a financially sound manner is never more important than after a marital split.
Finally, divorcing parents should be careful not to spend too much on their children.
Of course, the basic needs for children must be met, but couples leaving a marriage tend to lavish their children with unnecessary gifts. These actions may be motivated by a number of factors, including guilt, or a desire to “win” the children to one parent’s side, but parents should remember that emotional support and open communication are far more valuable than new toys.