Divorces are messy. Even if you haven’t had one you know that much. When a pair decided it’s no longer possible to live together you know that there are going to be a few misunderstandings. Yes, there are cases where the sentiment that a change is needed is mutual, and those divorces end without too many issues. But, usually, one side is more hurt than the other. This is where the problems might start. Most pairs fight over two things – kids and money. It pains us to say that the latter is the bigger issue.
It is hard to share assets with someone you no longer love. But, life goes on, and when divorce is in your hand you need to do it. But, finances and passion don’t bode too well. There is just too much space for mistakes both intentional and unintentional. You need to be careful. Divorce is a good time to start thinking about your interests. Yes, it will be hard to swim the waters filled with sharks of emotions and think about a financial lifesaving boat but you need to do it.
When you start feeling that the end of your matrimony is close you need to start preparing for the worst. Divorce can be long and painful, but it’s less so when you know what you’re doing. The best way to be prepared is to read articles like this one. In this text, we’re going to cover the nine financial traps and missteps to avoid in a divorce settlement. That’s just the first step. The second one is not to leave anything to the case. You will also be needing fine divorce lawyers such as good people from dfwdivorce.com to handle your case. It is best to have legal help on your side in this type of proceeding.
You must remember that when divorce is on the table, there’s no more love left between the two people. All that is left is an interest that is no longer mutual. This is where you need to step up for your finances and take the reign. If you’re aware that you need to do it, but still don’t know what and how to do it, please, continue reading. As we said, we got you covered. Below you have the paths you mustn’t take. Let’s start.
1. Budget Fail
Budgeting is important. It’s not the most interesting thing in the world but you need one. When you have a settlement on your hands you start with creating a budget. The settlement will function only if you know your limits. The budget revolves around your current income and expenditure. But you also need to have your eyes on the future. A settlement will backfire on you if you don’t know how will your income and expenditure are going to look once you settle. This is why you need to have a budget set in stone once the divorce process starts.
2. Failing to Think of Pensions
That’s right. A settlement looks both at the past, and present, but also at the future. Most people get stuck in the present. But in the same way, as with the budget you need to look into the future. Pensions will come, sooner or later. You must count them in when getting a settlement. If you pass on this option you might damage your future finances. As a spouse, you’re entitled to a share of the pension once the time for it arrives. Failing to acknowledge this during a divorce settlement could damage your future financial outlook. The value of the pension needs to be part of your financial decision during a divorce.
3. Expenses Mistreatment
We all spend. Some of us fewer others more. But, no person in the world doesn’t have expenses. When the divorce is going, you need to look to end the process, and settle, but also to do it with one eye on the future. If you’re not able to properly look at your expenses you won’t be able to properly rely on your future income. Furthermore, you need to look out for all the family members included in the divorce, especially those who are going to live with you once the case is settled. This is where you need to have a clear and almost precise idea of how much every member of the household spends; how much will they necessitate of the budget in the future; and even predict some of the unexpected expenses.
4. Rushing The Proceedings
Yes, we know divorces can get dirty. Many people just want to get over everything. While in some cases this is the best course of action, it’s not a wise thing to do. When the time to share assets comes you need to be focused and take things easy. There’s no need to rush anything. If you do, the chances are you’re going to miss something which would result in your financial downfall in the future.
If you’re rushing things, your partner might see this as an opportunity to take advantage of you. When it comes to divorce you shouldn’t expect that the other side is going to play fair. Division during a settlement is not an easy task, but standing up for your interests is a wise thing to do, and you shouldn’t back off. If you rush through the divorce process it might come around and bite you in the ass.
5. Skipping on Arbitration or Meditation
Some people straight out refuse these options. Both are part of the divorce process and are available as a part of the solution. Yes, they’re not for everyone, but refusing them without trying is a no-go. These proceedings are quite usual these days. You could settle your case outside of a court, with lawyers present, of course. For some it is a great way to save both time and money, not to mention stress. Even if this is not an option for you, straight-up refusing it might be a bad financial decision. At least consider it.
6. Ignoring Appraisals
Some divorces have more than a house and cash to share once the time to split has come. If one of the partners is running a business you need to know its true value. While in some cases you can know how much your partner’s business is worth, under some circumstances it is better to receive an appraisal. Yes, this process costs money, and it can take time, but you’re better off knowing the true worth of your partner’s business. This is something you should’ve known during the marriage, but once the divorce is on the table you’re better off being sure. In a case when the business in question is worth millions, you could cost yourself hundreds of thousands of dollars by not knowing its true worth.
7. Trusting The Conduct
When you come to the point in a marriage where divorce is the only option the conduct doesn’t matter too much. Many people tend to believe that if one partner was cheating or behaving badly that they’re entitled to less money. This is not the case. While dirty, a divorce settlement is meant to be fair to all parties involved. That’s why you’re settling. Only in extreme cases, prior conduct will influence the settlement. It is a bad financial decision if you think that you’re getting more just because you were loyal. One thing has nothing to do with the other, and when it comes to finances you need to approach them with logic and look to settle based on your assets and not your feelings.
8. Not Standing Up
When you’re in court and settlement is on the way it’s time to put your back against a wall and defend. Defend like an Italian defender during a World Cup. It is the only way to get what you deserve. With the help of your attorney, you need to stand up for yourself. Money is on the table and a fair division should be the only option. Assets and money are not taboo subjects anymore. It never was. Our universe revolves around money. Just focus on your interest and don’t back down. The other party will do the same. There’s no reason for them to get the bigger piece of the case. After all, you’ve baked it together.
9. Not Seeing Tough The Mist
As we already mentioned a few times. Divorces are messy. Don’t expect fair play. There’s no VAR system here to review the bad calls. You need to see through your partner’s moves on your own. Sometimes a partner will try to hide some of his assets. This is a common practice. Everyone wants to exit the divorce as a winner. That’s why you need to ensure that you know if they have something hidden. This is where a forensic accountant takes the stage. Yes, it’s just like in the movies. This type of accountant can discover trails of money and assets that were previously hidden from you. Finding assets like thee would be a huge win for any party involved from both moral and financial points of view.