Getting a divorce can be an incredibly stressful, emotional situation. Unfortunately, that can lead you to do things and make decisions that you would not normally make otherwise. Working with an attorney is one way to make sure that you are doing things that are the best for you and your family. What are some of the financial mistakes that individuals make during the divorce process?
Not Thinking About Costs
One of the biggest financial mistakes that you can fall victim to during a divorce is not thinking clearly about the costs that you will have after your separation. Many people drastically underestimate how much it costs to run their own home. If you are used to splitting bills, going from that to paying for all of the costs related to utilities, insurance, food, and more can be overwhelming. Make sure that you think through your budget after divorce, especially if you are considering asking for alimony.
Not Considering the Potential for Hidden Assets
Nobody wants to assume that their spouse is hiding things from them, but hidden assets are unfortunately common in many divorces. Not considering the potential for your current spouse to have any hidden assets is one of the most common financial mistakes during a divorce. Working with an attorney is one way to help uncover potential hidden accounts or assets that your spouse might be using to try to prevent you from receiving what you may deserve. If you are preparing for a divorce or in the midst of one and you notice large withdrawals or transfers, physical assets going missing, passwords changing on shared accounts, or sudden drops in income if the other party is self-employed, it can be cause for concern.
Not Taking the Right Assets
Another one of the most common financial mistakes during divorce is not taking the right assets. You probably have a large number of assets with your spouse, depending on the length of time that you have been married. However, when thinking about the division of them, don’t just consider the amount itself. Instead, think about the tax implications of the assets and what you actually need. Your situation is unique, so what is right for one person might not be right for you. For example, if you are young and in need of immediate income to support yourself, retirement accounts could be a poor asset, as you will need to pay early withdrawal penalties.
Learn More About Protecting Yourself in the Divorce Process from The Law Office of Elizabeth Anu Lawrence
If you are concerned about your financial decision-making during the divorce process, choose an experienced firm like the Law Office of Elizabeth Anu Lawrence to give you the help you need. Please give us a call at 443.352.3201. Skype and telephone consultation are both available to clients.