When it comes to filing for divorce, two words you probably won’t hear are “simple” or “cheap.” This is because there are more than a few financial mistakes some men make during the course of the proceedings that they wind up regretting down the road.
One way to avoid these mistakes is by hiring a divorce attorney. However, it’s also a good idea to get to know what the most common blunders are. You can make the divorce process as simple as possible with this information.
Failing to Keep Accurate Records
Be sure you keep a record of all your financial assets. This includes your bank accounts, future interest assets, such as stock options and pensions, and any income you earn before you file for divorce but received after (i.e., retirement fund contributions and work incentives).
If you don’t have an active role in your finances now, it’s time to change that. You need to be involved and know what is going on so you are not caught off guard as your divorce progresses.
It’s also recommended that you hire an accountant to help ensure you have a record of all your assets. Money is one of the most challenging aspects of a divorce to control during dissolution; however, careful, meticulous bookkeeping can be invaluable.
Mistakes with Your Taxes
When you are trying to determine the value of an asset, make sure you figure out the impact of taxes on the final amount. Mixing different categories of taxes means you must stay on top of the way everyone is applied. For example, the taxes that relate to the sale of your home or land don’t work the same as taxes that are taken from an IRA account.
Not Disconnecting
Many couples have shared credit cards, accounts, debt, car titles, house deeds, and more. After you decide to get a divorce, you need to start separating these jointly owned things. If you don’t do this, your ex may drain your joint bank accounts or not pay mortgage payments that you are then liable for. You can also check your credit report to find jointly held debts if you aren’t sure.
Hire an Attorney for Help with Your Divorce Case
You can’t take the risk of being unaware of financial pitfalls or traps that a divorce may put in your path. Hiring an experienced divorce attorney will help you handle these situations and ensure you get a fair outcome.
Having the right experts on your side and looking out for your best interest is invaluable in these situations. One of the most important things you can do is to remain involved as the divorce starts to unfold. You must also understand your financial situation. This can help ensure that you are not taking advantage of during the divorce proceedings. Keep in mind the attorney you hire will help with these financial aspects, too, and ensure that your best interests are protected.
