One of – if not THE most important factor in a divorce – comes down to the dollars and cents of it all. Divorce isn’t just an emotional split between people who no longer love each other – it’s the dividing of two lives and the assets that make up those lives.
Today, we’re going to focus on the dollars – and discuss some of the bigger financial mistakes people make in divorce proceedings and how you can avoid them. Let’s jump right in.
Don’t expect a windfall
One of the biggest mistakes people make is having unrealistic expectations as to what their financial situation will look like post-split. Your soon to be ex will now be supporting two households on an income that just supported one. If you’re the breadwinner – expect to be paying some sort of child support. If you’re the lower-earner- don’t be surprised when support is significantly less than you expect.
Don’t ever hide money and assets
A sure fire way to get yourself held in contempt of court is to hide your assets. Don’t move money out of accounts once the divorce has started, don’t try to liquidate assets or rack up debt to make your financial situation look worse than it is. The court WILL find them and assuming you don’t get charged with something, you’ll be in a significantly worse situation.
Don’t add money to joint accounts
Once you split, you’re on your own. Everything you earn is your property. So don’t keep pumping money into joint accounts. Now granted, some of your money might not be all your and/or free and clear – but opening up your own accounts and beginning to manage your own assets is necessary to start establishing yourself as a single person.
Don’t act out of spite
While this isn’t something that’s directly money related; money itself, certainly does motivate people’s behaviors – so don’t try to drill your spouse for the sake of it. You both want the same thing at the end of the day and that’s to get divorced and to move on with your lives. Turning every decision into World War 3 won’t and doesn’t help to achieve that goal.
Finances in a divorce are important. Be careful, be thoughtful but above all – be honest. If you need divorce mediation services in the Tampa, FL area, feel free to give us a call today and we’ll be happy to help you. Until then, good luck!