A divorce is an event that can take a financial and emotional toll on the couple involved. While we’ve covered some of the emotional aspects like life after divorce, there are fiscal issues that are equally important.
During a divorce, emotions run high and life-changing decisions can be made based on these feelings. This can lead to financial mistakes that loom over the aftermath of the finalized divorce. Here are five financial mistakes that we commonly see, that can help you or a loved one stay on top of their checkbook once the ink on the divorce documents dries.
Failing to Consult a Financial Professional
Many divorcing spouses have been living together for so long that “maintenance costs” for one person becomes something they’ve forgotten. Going through with the divorce head-on may get the couple through the process quickly, but can also lead to potential financial ruin if living expenses haven’t properly been calculated out.
Hiring a financial professional to review each person’s living expenses, alimony plan, and more can help make the finances less stressful once the dust settles.
No Mediation Process
Although mediation isn’t a requirement for a divorce, it’s a process that your legal team may ultimately recommend. If emotions are high and negotiations are hard to reach, the mediation process could prevent you from making some huge financial mistakes.
The involvement of a third-party mediator can not only save thousands in legal fees but also brings a new perspective into the mix. A mediator can help a couple talk through their divorce plan and ensure that the decisions made will have a positive financial impact on both of them in the end.
However, in some cases such as those of infidelity by your spouse or abuse, or other fault-based divorce, it is important to hire an attorney to be on your side to fight for the disproportionate share of property you may be entitled to under the law.
Focusing Only on Besting the Opposing Spouse
Regardless of what lead to the divorce, focusing on getting revenge isn’t the approach one should take. Remember, in most cases, the courts won’t punish your spouse for standard spousal disagreements. Therefore, hiring a lawyer that is focused primarily on being combative and not fairly settling the divorce can really cost some cash through the increase in legal fees alone.
Emotional Attachment to Assets
Sure, you may love that car you bought together or even a specific piece of art in the home. However, becoming emotionally attached to the assets involved in your divorce can lead to poor financial decision-making.
Most of the times, things like the family home are something that one person can’t financially hold up on their own. Expensive assets add up, and in an effort to have a leg up on the opposing partner, someone could end up being stuck with a mortgage and more that they can’t afford. Therefore, detaching yourself from these expensive assets can lead towards a focused mindset on how to maximize the financial outcome of the divorce for both participating parties.
Failure to Review Settlement Proposals
A divorce settlement is like a machine with several working cogs that make it spin. Both parties must have a clear understanding of what is being settled upon at the end of the divorce process. Reach out to your family attorney and ensure that they help you review all settlement proposals in order to be positive that everything is in order and there are no financial surprises.
Get Through Your Divorce with Stability Through Marx, Altman & Johnson
Your divorce doesn’t have to be something that leads to financial ruin. With the right planning and legal team on your side, the divorce process can be fair and leave both parties feeling financially stable. If you have any questions about divorce in the state of Texas, reach out to Marx, Altman & Johnson today for information that will help start you off on a smooth divorce process.