Divorce: 3 Financial Mistakes You Should Avoid
It’s never easy to let go of your marriage, especially when you’ve invested time and resources in it. It’s emotionally draining and can break even the most emotionally robust person. It’s during this time that dreams are shattered, and confusion takes the center stage.
To avoid this experience turning into a nightmare, you need to steer clear of some mistakes. And your finances are one of them. Here are some money mistakes you should avoid at all costs:
1. Not Knowing the Real Worth of Your Assets
When it comes to getting a settlement, you need to know the real value of your assets. Otherwise, you will be getting yourself into something you barely have no idea about. According to Huff Post, the only sure way of knowing this is by getting your assets valued. It might take long and will undoubtedly cost money, but it would pay off in the long run. Also, avoid focusing on the present monetary value, some assets will grow in value as time goes while others tend to lose it.
2. Failure to Plan for Life After Divorce
When you’re married, most of the responsibilities are shared. This includes the expenses and bills. When you get divorced, however, this will change and you have to deal with it alone. This calls for a serious planning of your finances. You can start by writing down your monthly expenses.
Also, talk to your family law attorney in Denver, CO and ask them to refer you to an experienced financial planner. This is also the perfect time for you to think about securing spousal support and child support payments with the right insurance. Don’t forget the current expenses, such as legal fees and tax obligations.
3. Trying to Hide Assets
You may feel you’ve worked hard for your money, so you deserve better. This may prompt you to hide assets to avoid them from being part of the settlement. According to the Reader’s Digest, this is not only wrong, but it’s also illegal. Any attempt will not only bring strife to future negotiations, but it can land you in jail.
There is life after divorce, and a good way to ensure that it’s a smooth one is by planning financially. Also, steering away from any of the above mistakes is ideal.