Top Financial Mistakes Made During Divorce
Seeking divorce may be the only option that couples have when they want to get out of a bad marriage, but it can be one of the most expensive too. The cost of hiring a lawyer make up most of the expenses, but not having a lawyer may cause you to lose even more. If you don’t want to add more to the cost of seeking a divorce, here are the top financial mistakes that you should avoid. Doing any of these will only make you financial suffer in the years to come after the divorce.
The divorce process requires you to make a lot of decisions. You’re lucky to have a good divorce lawyer to help you make the choices to ensure your current and future financial stability. Some of these financial mistakes may seem too easy to decide on that you would rather tackle it on your own, but many of them require the help of a good lawyer for proper strategizing techniques.
- Underestimating your expenses is first on the list. Many couples know how much they are making in a month, but they don’t know exactly how much they are spending. Take the time to sit down and write down all your monthly expenses. Doing so will help you become more realistic in making a budget you can work around in. Consider your future needs and the inflation rate. Underestimating the role of inflation in your personal expenses might find you financially challenged in the future.
- Believing that the parent who has been granted full custody should be staying in the family home is second on the list. Deciding who stays and who goes can be quite an emotional decision, especially when the children are involved. However, if adding rent cost to your monthly expenses is simply not feasible at this time, then staying put in the best financial decision you could make during the divorce. It may seem too uncomfortable, but it could mean huge savings for you.
- Assuming that an equal division of assets and liabilities is possible is what will put you in hot water. Although the goal is to pay off all existing debts and divide whatever is left between the husband and the wife, the road to the end of the discussion is not that simple. This is when divorce lawyers come in. They can help you decide which properties to fight for and which ones you should readily let go of, based on tax and future market value of the property.
Going through the divorce, no matter how mutual the decision may be, is always a difficult time. It requires a lot of patience, especially when financial adjustments need to be made. With the help of a good lawyer, you’ll be able to make the right choices regarding what to fight for and what you can only settle with.