A divorce brings the opportunity to make many important financial decisions and with that comes the chances to make mistakes as well. The following list of financial blunders can all be avoided so read on and take note.
Taking Divorce Property at Its Face Value
A divorce means a split of marital property and a fair and equitable distribution is the goal of a property settlement agreement. Your property will be valued in an effort to form an accurate number, but some pieces of property cannot be defined by market values. For example, you and your spouse might own both a family home and a rental property. Even though the rental property's value is less than that of the marital home, its real value is that of producing income. Be sure you know the potential for income, taxes, and other aspects of a given asset before you make decisions.
Not Understanding Unsecured Debt
This term refers mostly to credit card debt. Couples have various ways of dividing up credit card debt. They might split a joint debt, for example, down the middle. You should understand that what the judge approves and how creditors view debt is vastly different. In most cases, you are still financially obligated to pay debts in your name, regardless of the divorce decree. To avoid having to face a debt when your ex doesn't pay it, try to pay off all credit card debt before you divorce.
Assigning Budgeting Tasks a Low Priority
No matter how you've been dealing with your financial situation up to now, things are about to change radically. You might think you know what your financial state of health looks like, but often people overestimate income while minimizing expenses. Begin keeping up with every penny you spend for an eye-opening experience. Write down your bills, your discretionary spending, and your income to form a budget. You cannot even begin to negotiate a divorce agreement until you know where you stand, where you will be after the divorce, and what it will take to meet the budget.
Not Insuring Against the Future
You have the right to request spousal support if you earn less than your spouse. Additionally, if you are the physical custodian of a minor child, you will be paid child support for the child. As a second step, be sure that you require your ex to purchase and maintain a life insurance and disability policy that protects you and your child against future issues. Make sure that your spouse marks you as the beneficiary for these policies.
To get a better idea of what your rights are when it comes to financial matters, speak to your family law attorney.
Share24 January 2019
Family attorneys are hired to help families through all sorts of things. Everything from divorce, child custody and adoption can be handled by a family attorney. If you are planning to adopt a child, you will need an attorney to help ensure that everything goes well. There are so many documents that need to filed, inspections to be performed and approvals to receive. This blog will cover all different kinds of cases and situations that a family attorney may be able to help your family with. Everything from the good to the bad will be discussed right here on my blog.
