What Are the Most Common Financial Mistakes Made During a Divorce?By Moskowitz Law Group, LLC |
Divorce can be emotionally and financially draining. After years of sharing your property and finances, you now must decide how to split these assets. Making mistakes during this process may lead to unnecessary losses and expenses. By knowing the most common financial mistakes during a divorce, you are more likely to avoid them and work toward an outcome that provides financial security in your post-divorce life.
Fighting for the House
Many people going through a divorce believe that the house is one of the most valuable assets to keep. When selecting what to do with marital property, make sure you take your financial situation and possible alternatives into account.
A beautiful mansion worth millions might have a sizable mortgage and expensive maintenance costs. Recent divorcees may also be unable to sell their home if it is worth less than their debt. In certain cases, it could provide greater financial benefits to compromise on or give up and sell this property.
Divorces are stressful. Many people enjoy some retail therapy to take their minds off their emotions. While you might have been able to afford a certain lifestyle in the past, divorce expenses can pile high, especially if you have been out of the workforce. It is best to avoid excess spending during your proceedings to be able to afford the resources you need and prepare for independence.
Cashing in Investments
During expensive divorce proceedings, you may consider cashing in on your investments to pay your immediate bills. However, you may face a hefty tax bill if you sell high-value assets. Additionally, you will no longer be able to receive the long-term benefits of these investments. Lastly, you may be violating the law by doing so because assets subject to division in divorce ordinarily can only be sold or cashed in on with a court order or agreement if the divorce has not been finalized yet. While a divorce may impact your life in many ways, it is important to consider your future financial objectives before making rash decisions.
A Divorce Attorney at Moskowitz Law Group Can Help You Avoid These Mistakes
One of the biggest mistakes someone can make in a divorce is refusing to retain legal counsel. While it may seem like the cheaper alternative to represent yourself, the terms of a divorce settlement are almost impossible to change. Having a seasoned divorce lawyer on your side is the best way to avoid mistakes and unnecessary costs.
If you are getting a divorce and want to ensure you protect your finances, contact Moskowitz Law Group. Our legal team is dedicated to handling family law cases and can work to ensure you sign a settlement that leaves you financially stable to the maximum extent possible.