The end of a marriage will significantly impact both parties long-term. The choices you make during this process matter because they can affect your daily life for years or decades down the road. Mistakes made during a divorce can lead to serious financial harm, and it’s beneficial to know how to avoid them even before initiating the divorce process.
The family home
One of the most common mistakes made during divorce is deciding to keep the family home, even when it does not make financial sense. Keeping the home is often an emotional decision, and a spouse may not be considering how he or she will pay for it on one income. The cost of the mortgage, taxes, insurance and upkeep can be overwhelming.
There are also tax implications to many of the property division decisions during a divorce. Selling certain assets can come with tax burdens that may be surprising after the fact. This is true when selling a family home, but it is also an important consideration for dividing retirement assets. Another common mistake is to fail to make a budget that accounts for these issues and the post-divorce financial changes that may come.
Avoiding financial mistakes
Divorce is a complex process that will lead to various types of changes. Financial missteps can come at a great cost, which is why it is helpful to work with an experienced California attorney from the very beginning of the process. A family lawyer’s guidance is invaluable when trying to avoid expensive and avoidable mistakes.