Updated: May 2, 2022
Anyone who is in the process of navigating a divorce hopes that the process will go as quickly and smoothly as possible. Unfortunately, many people make significant financial mistakes as they go through the divorce process. The financial decisions that a person makes during divorce can greatly contribute to his or her economic situation afterward, which is why it is important to have an attorney on your side helping you look out for your financial best interests. The following will review some tips to consider when making common financial decisions that arise during a divorce.
HAVE AN ACCURATE PICTURE OF YOUR FINANCES
After filing for a divorce, one of the best first steps to take is to assess your finances as well as to establish a precise budget. It is also important to understand that your financial situation will likely change during and after your divorce, so periodically review your finances over the next few years.
REMEMBER SHARED DEBTS
During the division of assets phase that occurs in a divorce, a court of law will also divide your liabilities and debts. To prepare for this phase, it is critical to have a firm idea of your shared debts, which might include things like car loans, private loans, or credit card debt.
CONSIDER TAX ISSUES
During the divorce process, it is critical to understand that the dissolution of your marriage will result in a number of tax changes. After all of your assets and liabilities have been divided, you might discover that you owe additional money in taxes. To avoid the unexpected come tax season, remain mindful of the tax implications of your divorce and discuss them with your attorney and accountant.
DO NOT HIDE ASSETS
Although it can be tempting to hide assets during a divorce so that they do not end up divided between you and your spouse, this type of behavior is illegal. To avoid negative consequences, it is better to honestly disclose details about all of your assets. Rather than hide your assets, you should discuss your agenda with your attorney and then develop a strategy to increase your chances of obtaining these assets during the property division process.
CLOSE SHARED ACCOUNTS
You should not continue sharing finances with your spouse after a divorce. If your spouse is still able to access your financial accounts, there is a risk that your spouse might attempt to monitor your spending or make unauthorized withdrawals.
SPEAK WITH A EXPERIENCED DIVORCE LAWYER
Even though there are a number of financial mistakes that can be made during divorce, by following the suggestions listed above, you can decrease the chances that you end up facing financial difficulties. If you are currently navigating the divorce process, it is also often a wise idea to obtain the assistance of an experienced divorce attorney. Contact a divorce lawyer in Glendale at the Monahan Law Firm PLC today to schedule an initial case evaluation.