There is no way around it, divorce is hard. It takes a toll emotionally, physically, and financially. And, if you make the wrong moves, your divorce can cost you more than just the attorney fees and half of your marital assets. Unfortunately, once your divorce is final, you cannot go back and ask for more of the marital property if, down the road, you realize you gave up too much.
By taking the time to consider various options and circumstances and then planning accordingly, you can come out of your divorce more financially secure than you might think. However, in order to have a chance to do this, you need to avoid the following divorce mistakes.
Keeping the house
The only way you should insist on keeping the house in Centennial is if you can absolutely afford to do so. In other words, if you can handle the mortgage payments, utilities and general maintenance and upkeep and still have plenty of money left over, then you can consider keeping the house in your divorce.
However, for many people, taking sole control of the family home is not realistic. While you could have strong sentimental attachments to the home or you do not want to uproot your children, keeping it as part of your divorce settlement may not actually be worth it.
Not planning for the long term
Even though you might be in a hurry to finalize your divorce from your husband, don't let it blind you to the long-term effects of your financial decisions. In other words, do not rush through the divorce process and accept a property settlement that you have not fully examined. Take the time to fully understand all of the pros and cons of every available option so that you can walk away with a fair settlement that provides for you in the long term.
Not focusing on the big picture
While you work through the divorce process, be sure you are looking at the big picture and focusing on only one or two variables. For example, certain aspects of your divorce settlement might have tax consequences. Alimony, for instance, is generally taxable income for the recipient. However, if you choose to take it as an up-front lump sum payment, it might be a tax-free transaction. Look beyond the basics and consider how the details will play out so that you can make the right decision.
If you are considering divorce, it is vital that you avoid certain missteps so that you can walk away with the settlement you deserve. The above tips can help you stay on track. However, do not discount the advice of people like your accountant, financial advisor, and attorney.
Tags: Divorce
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