When a divorce is imminent, it may feel like the world is crumbling around you. Divorces in today’s society can be extremely expensive and can be financial burdens. However, individuals should take necessary precautions to ensure they do not become financial victims during the divorce process. Individuals should know important details regarding their finances. If you are unaware of your finances, you will be at a disadvantage. Individuals should keep track of all of their financial records to ensure their ex is not trying to cheat them. If you are going through a divorce, contact a dedicated Union County Divorce Attorney who can help you avoid making common financial mistakes during the divorce process.
What mistakes can I avoid to ensure I do not become a financial victim during my divorce?
Over-using your lawyer
As mentioned above, divorces today are extraordinarily expensive. Common financial mistake individuals make when getting a divorce is overusing their lawyer. Lawyers can charge hundreds of dollars an hour for legal advice. This can add up quickly and make a real dent in your pocket. You may believe your lawyer is the only person who understands the difficult situation you are going through, but that is not the case. Individuals should utilize talking to their friends and family as their advice is free of charge. As well as a financial advisor or therapist as their services are typically cheaper as well. Do not make the mistake of overusing your lawyer as it hurt your financial situation later on.
All married couples should try mediation. Married couples going through a contested divorce may neglect to try mediation because they believe it is a waste of time. However, mediation can be a helpful alternative method to resolve disputed issues. Financially, mediation can save couples thousands of dollars in legal fees as they may resolve their issues a lot faster than they would during litigation.
Typically, people neglect the impact taxes can have on their divorce settlement. Your marital assets may be taxed once you receive your final settlement. Both parties may believe they are getting a fair share, however, taxes can change that. Individuals must assess and determine the value after taxes to ensure they are getting a fair settlement. It is always good to enlist the help of a tax professional who can make sure you aren’t getting cheated out of any money.
Updating important legal documents
After a divorce is finalized, many people forget to update legal documents such as their life insurance policies and estate plans. If you fail to fix your legal documents to reflect your current situation, you could risk your assets being passed to your ex. To avoid this you should take them off and assign newly designated beneficiaries.
If you are going through a divorce, don’t hesitate to reach out to one of our skilled and trusted attorneys who can help you avoid making financial mistakes that could negatively impact your future. Our firm of dedicated team members can help you avoid becoming a financial victim during the divorce process.