Many people are prepared for the emotional toll that divorce takes on them, but they usually do not expect divorce to have such a significant impact on their finances. Both spouses can experience financial setbacks as a result of divorce. But, it is possible to protect your finances and minimize the damage. How? Avoid these common financial mistakes:
Staying in an Unaffordable Home
Some people are so attached to their home that they fight to keep it during a divorce even though they can no longer avoid to live in it. It’s hard to say goodbye to your home, but it’s important to let it go if living in the home is not the best financial decision.
Failing to Consider Long-Term Financial Security
You need to understand the long-term financial consequences of a divorce settlement prior to signing it. For example, let’s say your spouse offers to pay spousal support after the divorce has been finalized. Spousal support will provide you with short-term financial stability, but what will you do when the payments stop? How will you make ends meet? These are the questions that must be answered before signing a settlement.
Forgetting About Marital Assets
The first step in the process of dividing property is creating an inventory of all marital assets. This should include real estate, cars, collectibles, jewelry, stocks, retirement accounts, cash, and any other asset of value. Make sure that every martial asset is included on this list. Why? Assets that are not included will not be divided, which means your spouse could end up with an unfair share of the assets if you fail to notice that he left some off of the list. It’s impossible to divide the assets fairly if you aren’t sure what you have in the first place, so don’t make this mistake.
Giving In Too Early
Negotiating with your spouse is exhausting. But, it’s important to stay strong instead of giving in simply to put an end to the negotiations. If you give in too early, you may end up agreeing to a settlement that gives your spouse a huge financial advantage over you.
If you are filing for divorce, it’s in your best interest to contact Williams Law Group, LLC at once. Let our team of experienced attorneys help protect your financial future with a fair divorce settlement. Call our office at (908) 810-1083, email us at firstname.lastname@example.org, or contact us through our confidential online form to schedule a consultation.