3 Financial Mistakes to Avoid in Your Divorce
During the divorce process, spouses have several important decisions to make before they can legally part ways. The most important and complicated determinations typically involve money and children. It’s incredibly easy for a person to make a devastating financial mistake or concession when they’re negotiating their divorce settlement, particularly if they don’t have an experienced attorney representing their case.
To prepare you for potential contingencies, the New Port Richey divorce attorney at Dale L. Bernstein, Chartered Law Office has created a list of 3 financial mistakes to avoid during your divorce.
Mistake #1: Not Creating a Post-Divorce Budget
For better or worse, every decision you make during the negotiation process drafts the narrative of your post-divorce life. While divorce is undeniably an emotional and complicated experience, you still need to remain practice and plan for your future. Before you finalize your settlement, it’s important to create a post-divorce budget plan that safeguards your standard of living.
Your divorce settlement is an agreement that lists the terms of your separation. If you agree to terms without considering your general financial situation, you may find yourself struggling to adjust to a single income. Many people are surprised by how limited their financial options are after their divorce. Oftentimes, they fight for a family home they can’t even afford to keep. By creating a budget, you can determine your disposable income and calculate your monthly expenses.
If necessary, you may need to take on a second job or continue your education. Even if you’re going to receive spousal support payments, you can’t depend on them for true financial security. At some point down the line, your former spouse may request a modification or a termination of the court order if they are also facing financial hardships. Likewise, if you’re paying support, you don’t want to agree to an amount that jeopardizes your overall financial security.
Mistake #2: Not Compiling & Reviewing Your Financial Documents
Digging through closets and dressers for old financial documents hardly sounds like a relaxing weekend event. However, this information is essential if you want to negotiate a fair agreement. After all, one of the most important aspects of the divorce process is equitably dividing your shared assets and property. How can you complete this task if you don’t know the extent of your assets and how much they’re worth? If you’re concerned about your spouse hiding assets or property, you can talk to your lawyer about working with a forensic accountant.
Mistake #3: Making Concessions Due to Divorce Fatigue
Finalizing a divorce is not a quick or easy process. Without effective legal representation, spouses may end up quarrelling over their divorce negotiations for years. As you get closer and closer to completing the process, you may be emotionally wrung out and exhausted. Consequently, you may find yourself agreeing to terms just because you’re tired of the arguing and the stress. Some concessions are necessary for a relatively peaceful resolution. However, if you make the wrong concession, you may find yourself paying excessive amounts or money in child and spousal support or relinquishing important assets. You never want to agree to a concession that may create financial hardships for you in the future. Your best option is to discuss your case with a lawyer who can negotiate on your behalf and represent your interests.
Have Financial Concerns Regarding Your Divorce? Schedule a Consultation
If you have financial concerns regarding your divorce or want to explore your legal options, contact the New Port Richey divorce lawyer at Dale L. Bernstein, Chartered Law Office. We can help you safeguard your quality of life by negotiating on your behalf both in and out of court. With our guidance, you can secure a beneficial settlement ensures your financial stability in your post-divorce life.
Contact Dale L. Bernstein, Chartered Law Office at (727) 312-1112 to schedule a consultation.