In today’s society divorces are expensive. It is imperative to consider the financial impact of a divorce to ensure you come out of it with long-term financial security. Stress and animosity between couples often lead to them making avoidable money mistakes during the divorce process. If you are seeking a divorce, contact one of our qualified Monmouth County Divorce & Separation Attorneys. In addition, continue reading to learn more about how you can avoid making common money mistakes while getting divorced.
What are common money mistakes couples make when getting divorced?
It is important to make the right decisions during the divorce process as common money mistakes could affect an individual’s long-term financial security. To avoid making common money mistakes while getting divorced, individuals should consider the following:
Oftentimes, one spouse is the “breadwinner” and handles all of the finances in the household. One spouse may be in the dark about their finances. This puts them at an extreme disadvantage as their spouse may be able to hide assets which could lead to an unfair divorce settlement. It is important for individuals to know their finances and have appropriate documentation such as financial statements and records to ensure they are receiving a fair portion of their marital property in their divorce.
Underestimating living expenses
A common mistake made during the divorce process is underestimating living expenses. As a result of inflation, everything is becoming increasingly expensive in today’s society. It is critical to account for inflation and future expenses when creating an accurate budget. Unfortunately, oftentimes individuals make budgets that don’t account for all of their expenses. The divorce settlement may not cover essential expenses if this happens. This could result in an individual not being able to pay off their bills. It is important to create a monthly budget that includes all living expenses to ensure financial security after the divorce is finalized.
Overusing an attorney
It is extremely difficult and emotionally draining to go through a divorce. There is an incredible amount of complexity that makes it difficult for individuals to open up to their loved ones. Sometimes individuals don’t want to get their friends or family involved. This results in them confiding in their attorney for advice and guidance. However, this can cost a substantial amount in legal fees, as every time an individual calls their attorney they are charged. Instead of turning to an attorney, individuals should confide in a therapist or a friend as it will save them a lot of money in legal fees.
Disregarding a Qualified Domestic Relations Order (QDRO)
Oftentimes, individuals overlook a QDRO because they don’t understand the benefits of requesting this type of legal decree. Individuals can financially benefit from this type of judgment as it allows spouses to obtain a portion of their ex’s retirement benefits which can help pay child support or alimony.
Ultimately, there are several ways an individual can avoid making money mistakes that affect their financial standing after a divorce. If divorce is imminent, please don’t hesitate to get in touch with one of our trusted and determined attorneys who can help you avoid making money mistakes that affect your long-term financial security.