A recent Money Magazine article highlights strategies for avoiding financial mistakes during divorce.
Each divorce comes with its own set of emotional struggles and financial risks. Decisions made during the divorce process can have long-lasting effects. Given these significant impacts, it is advised that you avoid making any decisions in haste. When it comes to making financial decisions, a small error could impact your future. It may hinder your future financial stability or your ability to make large purchases or put away savings. Your goals of moving forward from the divorce may be thwarted by decisions made during the divorce process.
The article offers three specific tips for preventing common financial mistakes during divorce:
- Keep the big picture in mind — It is important to keep in mind the larger picture of your financial situation in order to protect yourself and ensure the best outcome. Focus on the business transaction aspect of your divorce and understand that there are many divorce related expenses. It is optimal to keep focused on the areas that are most important to you, rather than spreading your attention thin.
- Pay down joint debt quickly — Understand that you are legally liable for any debt with your name on it. Come to an agreement with your soon-to-be ex-spouse to pay down all joint debt. It is ideal to work out a plan to pay down or pay off any joint debt you have using joint marital assets while you are still married, and then close those accounts immediately. If you cannot reach such an agreement, talk to your attorney to minimize the risk of this becoming a problem for you. Be sure to follow all court orders and restraints on paying down debt during the divorce, and be sure to check with your attorney before making any large payments or purchases during this time.
- Maintain a lifestyle you can afford – Develop a solid understanding of your new budget in order to determine what shifts in lifestyle may be needed. This is not the time to run up new debt by trying to keep up with the Joneses. Adjust your life style to match your new income and expenses.
Choosing to end a relationship that was meant to be forever is emotionally painful and quite challenging. You should not try to tackle it alone. No matter what your financial situation is, it is essential that you work with an experienced family law attorney. Our family law attorneys at Dellino Law Group are prepared to help you navigate the divorce process, offer sound legal advice and counsel, and ultimately reach the best possible outcome. Please contact us for a consultation.