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Financial Mistakes During Divorce

Posted by Unknown | Jul 08, 2021 | 0 Comments

financial mistakes during divorce

If you are searching for ‘high asset divorce mistakes' then Drama Free Divorce is committed to guiding you. Our dedicated team can guide you through the intricate complexities of this transition period while helping to avoid common pitfalls that often accompany it. With convenient financing plans starting at $500 monthly plans for residents of Kansas City, Missouri, and Kansas.

At Drama Free Divorce, we take great pride in offering transparent pricing that won't leave any surprises for our clients during payment processes. Our fixed-cost structure takes away any uncertainty related to expenses, providing peace of mind in this trying time. You also won't need to attend court appearances as most cases can be taken care of without ever needing to step foot inside a courtroom!

Beyond legal expertise, our compassionate and understanding attorneys understand the sensitivity of your situation. With professionalism and empathy in our approach, we're dedicated to offering the support necessary during this trying chapter in life.

Divorce can be an emotionally trying and financially devastating experience, so avoiding common financial mistakes during divorce settlement is vital for ensuring a smoother journey and protecting your well-being. We will explore some pitfalls you should watch out for, the advantages of consulting an attorney, and ways to safeguard your future finances in this article.


Top Financial Mistakes to Avoid in a Divorce Settlement:

Navigating through a divorce can be emotionally taxing and financially unwise decisions can easily slip by you if your emotions get the better of you. Here are some financial pitfalls you should be wary of:

  • Neglecting Financial Prep: Failing to gather and organize financial documents properly may result in incomplete asset division and missed opportunities for financial security.
  • Underestimating Expenses: Post-divorce life often comes with increased living costs, which may leave you short financially. Underestimating these expenses could leave you struggling financially.
  • Neglecting Tax Implications: Divorce can have significant tax repercussions, including capital gains and alimony tax considerations, which if left ignored could create unexpected financial burdens.
  • Rushing to Sell Assets: Under-valuing Assets: Hasty asset liquidation can have severe repercussions for your long-term financial health, possibly including selling important items below their market value and leading to short sales at less than their true worth.
  • Disregarding Your Credit Score: Neglecting to take notice of your credit score could compromise your ability to secure loans or mortgages in the future.
  • Missing Out on Retirement Accounts: Ignoring retirement accounts during your divorce settlement could rob you of crucial savings.
  • Not Considering the House: Holding onto your family home may not always be financially prudent as it involves significant maintenance costs.
  • Missing Hidden Assets: Failing to discover hidden assets may result in an unequal distribution of marital property.
  • Relying on Verbal Agreements: Verbal agreements may not stand up in court, leading to unmet financial expectations and potential lawsuits.


How to Avoid Financial Mistakes in Divorce Settlements:

To help navigate a divorce more smoothly and avoid potential financial pitfalls, here are a few helpful suggestions:

  • Communicate openly with your soon-to-be-ex-spouse about financial matters.
  • Seek financial advice from a professional to fully comprehend all settlement options.
  • Maintain your composure and focus on reaching an amicable and equitable agreement.
  • Be open and honest when discussing your financial assets and obligations.
  • Consider the long-term financial ramifications of decisions made during your divorce proceedings.


Is Financial Problems a Cause for Divorce?

Financial issues are one of the primary causes of divorce. A study conducted by Ramsey Solutions indicated that money matters were responsible in 36% of surveyed cases for initiating proceedings for divorce.


Why is Hiring a Divorce Attorney Better Than Without an Attorney?

Though you might be tempted to handle the proceedings on your own in order to reduce expenses, hiring an experienced divorce attorney could prove invaluable. An experienced attorney can:

  • Expert advice and ensure a full understanding of all rights and options.
  • Help negotiate a fair settlement to safeguard your financial interests.
  • Navigating through complex legal processes efficiently and reducing stress.


When is the Time to Hire an Attorney?

As soon as possible, seek legal advice regarding your divorce proceedings and potential financial repercussions, in order to develop an appropriate strategy that protects your assets.


What are the Criteria for Finding a Good Attorney?

Finding an attorney capable of leading to a successful divorce settlement is essential to its success. Consider these criteria when searching for legal advice:

  • Experience: Make sure your lawyer has extensive knowledge of family law and divorce cases.
  • Reputation: Do your research by reading reviews or asking for recommendations from friends or family.
  • Compatibility: Select an attorney whom you feel at ease discussing sensitive topics.
  • Communication: Be certain your attorney communicates clearly and promptly.


Why Choose Drama-Free Divorce:

Drama-Free Divorce has an established record of successfully settling family law and divorce cases, thanks to our experienced attorneys' dedication to open communication throughout the process and client representation that prioritizes protecting financial interests and helping achieve favorable results for our clients.


Suggested Action Steps:

  • Collect Financial Documents: Start collecting all financial documents such as bank statements, tax returns and property records to begin this process.
  • Assess Your Finances: Gain an understanding of your current financial status and any possible obstacles post-divorce.
  • Consult a Divorce Attorney: Schedule an initial consultation with our experienced divorce attorney in order to discuss your case and receive tailored advice and counsel.
  • Investigate Settlement Options: Explore mediation or collaborative divorce as possible options to reach an amicable agreement that reduces legal expenses.
  • Plan for the Future: Create a post-divorce financial plan with assistance from an advisor.
  • Prioritize Self-Care: Divorce can be emotionally challenging, so make sure to prioritize self-care and seek emotional support when necessary.

It's crucial that you avoid financial mistakes during divorce in order to safeguard your future. With careful planning, open communication, and professional guidance from divorce practitioners, it is possible to emerge with your finances unharmed from this difficult process. Do not forget the value of seeking professional legal and financial guidance as key steps towards an easier transition into this new chapter of life. Contact us today at 816 615-5555 or send us an email on our Contact Page.

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