The Biggest Money Mistakes To Avoid During Divorce
In today’s society, divorce has not only become more popular, but it has also become more expensive. Some costs associated with divorce are unavoidable, such as if you are ordered to pay alimony or child support. However, there are some ways to avoid paying certain costs, alleviating some of the financial burden. If you are concerned about the financial position you will be left in after divorce, it is important to obtain legal advice. Below, one of our Brentwood divorce attorneys outlines the biggest money mistakes to avoid during the process.
Not Understanding Your Finances
It will place you at a great disadvantage if you do not fully understand your financial position going into the divorce process. If you do not know all of the assets you and your spouse jointly own, your spouse may try to hide some of the most valuable. This could result in you receiving an unfair portion of marital assets. You should also obtain copies of all of your financial records and statements and fully review them with an attorney to obtain a better understanding of your finances.
Overusing Your Attorney
Your divorce attorney will protect your best interests at all times, and help you obtain the best possible outcome. Still, you should only contact them when absolutely necessary. For example, if you have a question about the divorce process that is not pressing, write it down. You can then create a full list of questions and ask them all at once. Your divorce lawyer will charge for every phone call or email they send. If you can consolidate these, it can greatly reduce the cost of your divorce.
Failing to Account for All Expenses
Underestimating the expenses you will face post-divorce is a very common money mistake made during divorce. You may have to find another place to live and will incur other expenses, including utilities, maintenance, and potentially property taxes. It is important that you take all of these expenses into consideration. Also consider future expenses, as well as inflation, so you can be fully prepared.
Not Accounting for Unsecured Debt Liability
Failing to understand the amount of unsecured debt you will be liable for paying after the divorce is another very common money mistake. The court will divide all marital property during the divorce process, including joint debt. Credit card companies are not bound by divorce orders, and they will want to recover the debt regardless of whether you are married or not. This means they can still contact you after your divorce in an attempt to recover the debt your former spouse is now liable for. If you can, pay any marital debt before the divorce is finalized, so you can protect yourself from liability.
Our Divorce Attorneys in Brentwood Can Help Protect Your Finances
Divorce will have a significant impact on your finances, so it is important to prepare for it. At Beal, Nations & Crutcher, our Brentwood divorce attorneys can help you make good decisions and avoid common money mistakes so you are fully protected. Call us now at. 615-861-2304 or contact us online to schedule a consultation.