When you get a divorce, it can truly drain you, your money and your time. It also takes a toll on the entire family. However, there are ways that you can prevent expensive mistakes when you are filing for a divorce. Yes, there are options that you can adapt to when litigating for divorce. The key to having a smoother divorce process is to plan ahead and make coherent decisions.
Avoiding Costly Mistakes
During the divorce, you can avoid many costly mistakes. It is understood that a divorce is emotionally charged and can lend to making some huge financial mistakes, especially because there will be a dissolution of household. So instead of one household, there will be two households with two different financial needs. It is best to set some realistic and practical expectations upfront in terms of finances. In many instances, finance is one of the major battles that face divorced couples. It is important to take future finances into account during the divorce proceedings because what may seem equitable and fair today could be the opposite in the future. Alimony and child support amounts should be effectively negotiated by an experienced divorce attorney. Anything can occur after the divorce such as disability and of course, the mandatory retirement planning. In terms of death and dying, one or both of the divorce couple need to secure the appropriate life insurance premiums to be paid. If you find yourself in financial trouble, you could consider title loans, using your vehicle as collateral.
The IRA Fund
Have the IRA fund split, but you should be leery of the expense that could be incurred. You have to take specific precautions prior to finalizing the divorce. Don’t wait to share the IRA fund after the divorce is finalized or you might find the money all gone as it could be spent by the other half. It is best to divide it during the divorce proceedings. Solicit the help of an experienced financial specialist who will tell you the best way to allocate your retirement assets. You may also learn a thing or two more such as how to manage one household income and how to structure alimony payments to avoid future animosity with an ex-spouse. You can avoid costly mistakes if you get help from a financial expert that works on behalf of divorcees.
The Divorce Battle
Here are some things to consider during a divorce battle:
- Get help from a financial mediator
- Gather all details related to the marital finances
- Solicit the help of a divorce attorney to act as a mediator
- Work with a divorce coach
- Don’t take advice from friends and family
- Be aware of your household finance while married and upon your divorce
The Bottom Line
Most people will oftentimes comingle their finances upon being married, even when it was acquired before the marriage. This is not advised since it creates problems during a divorce. The assets obtained before a marriage should be separate property during a divorce. The divorce proceedings will call for the divorcees to indicate the different assets including finances and the court will decide how to divide them.