No one gets married thinking that one day they will divorce, but more than 750,000 do get divorced in the USA alone each year.
If you are one of the many couples who are divorcing this year, then you need to do what you can to protect your financial interests. With that in mind, below you will find some important financial mistakes that you should never make in your divorce settlement:
- Not getting legal financial advice
Yes, it is great if you can have an amicable divorce, but if you want to ensure that your assets are split fairly, then you do need to take some financial advice, You can be fair without being a pushover, and if you want to be able to start again, speaking to san independent divorce lawyer will help you to reach a fair settlement for you both most effectively.
- Not working with a tax planner
The thing that will affect both of your finances hardest when you divorces is the I.R.S because when you divorce, you may become liable to pay more due to joint returns or financial audits. If you can work together, then you should work together in order to minimize your tax burden when the divorce is final. Any money you can save by lowering your tac burden can then be split between the two of you to give you the best possible fresh start, financially speaking at least.
- Having emotional attachments to your stuff
It is never a good idea to be emotionally attached to your possessions when you are going through a divorce because you never quite know how things are going to work out, and your emotions could leave you into making the wrong decisions.
Many people are so desperate to keep their house that they won’t consider selling it even if they will not be able to keep up the payments (Next Act Properties can help many people in this situation) so they end up fighting and fighting for something that will eventually ruin them financially. Think of your divorce as a fresh start and try not to let emotions rule the roost.
- Not taking the time to create a detailed budget
When you are working out a financial settlement, it is really important that you have a detailed budget of all of your incomings and outgoings so a fair alimony payment or financial settlement can be worked out. If you don’t work out your budget accurately, you might end up selling yourself short and getting less than you need to live on.
- Not trying mediation
Although you will still need to hire a divorce lawyer, if you go through mediation and you can stay on relatively good terms with your ex, you can rely on your lawyers much less for the little things by communicating with each other, and thus safe yourself around $300 per hour on legal fees.
If you can avoid making these financial mistakes, your divorce settlement is likely to be fairer and your finances are likely to be in much better shape after the plip, so be careful and good luck!