Common Divorce Pitfalls (And What To Do About Them)
Going through a divorce can be tough, frustrating, time-consuming, and costly. In addition, it's easy to make costly mistakes during a divorce because you'll often be faced with many decisions. From the lifestyle shifts to finances and changing family or social dynamics, there's usually a lot to think about when going through a divorce. Therefore, your decisions on all these can make the difference between a stress-free divorce and an expensive, overwhelming, and painful one.
The trick to having the former is understanding the common pitfalls you are likely to encounter and how to work them. Here's more about this.
Doing It Yourself
One of the biggest mistakes you can make when going through a divorce is attempting to do it on your own. The process is usually complex. Besides, there are a lot of issues surrounding a divorce, including legal and financial aspects. Therefore, it's easy to make costly and harmful mistakes without proper guidance. And while friends, family, and colleagues will often be supportive with good intentions when going through a divorce, it's often critical to involve professionals. First, ensure you have the right legal advice. Therefore, look for a family lawyer to guide you through the process. Financial professionals like accountants will also come in handy for the financial elements of your divorce.
Making Poor Financial Decisions
Making the wrong financial decisions during a divorce can significantly impact the rest of your life. Therefore, work with your lawyer and financial professional to help you avoid costly financial mistakes. For instance, do not ignore or underestimate your expenses. Doing this can be costly because you may struggle to maintain your lifestyle post-divorce. Therefore, understand your current expenses and be realistic about your future expenses too.
Failing to keep financial records is another mistake that could prove costly when going through a divorce. Your divorce lawyer, accountant or financial planner, and other professionals need the right financial information to guide you on how to protect your financial interests. Therefore, maintaining good financial records will often go a long way in making this effortless for them.
Failing to account for taxes is another costly financial mistake you can make during a divorce. Your tax situation will always change after your divorce. For instance, you may be required to pay more taxes if you liquidate your investments. Failing to pay the required taxes can result in significant tax penalties. Therefore, work with a financial professional to help you understand your tax implications.
Being Unresponsive To Legal Actions
Failing to respond to legal actions can also cost you significantly. Therefore, respond to all court summons and legal papers because family law courts can be unforgiving. That means failing to respond to their calls can result in action being taken against you. You also put yourself in a bad position regarding your case.
Reach out to a family law firm in your area for more information.