Your marriage is going though a divorce and that can be personally and financially messy. During the divorce proceedings it is important to avoid making financial mistakes. Forbes came out with a list of tips in helping to avoiding making those financial mistakes.
What was two, now becomes one. Not every household relies on one source of income. Usually both incomes are combined into your lifestyle. The two sources of income will about to be split and money might be a little tight.
Being secretive. Withholding information from your spouse or your lawyer will cost you more money and you will eventually pay for the legal work to get that information.
Battle in the courthouse. Pick your battles wisely while going through a divorce, and never turn the courtroom into a battleground. Doing so will put a drain on your finances as well as your emotions.
What is considered evenly split may not necessarily be 50/50. Assess your tolerance for risk before deciding how to divide your financial assets. One spouse might feel comfortable taking over your stock portfolio, and the other takes over your bonds.
Focus on the now and not the later. Always understand the financial implications of your decisions. You might not want an item that would depreciate, like a car, and may want mutual funds. If the funds are chosen wisely, it may be worth later than the car.
Uncle Sam. The saying goes “Nothing is certain but death and taxes.” Remember to factor in taxes when you make your financial decisions. When dealing with stock portfolios, for instance, they might seem to have equal dollar value, but could be worth completely different amounts based on capital gains.
Be prepared. It would be great to be able to keep your divorce simple. In doing so, make sure you have all the information regarding your finances. Gather all the information you can about your mutual funds, assets, retirement pensions, investment funds, etc, to help your financial future.
Make sure you are cut off. Make sure to work out a way to get your name off, or minimize, all financial ties that bind you to your spouse. Keeping the joint finances could be disastrous. What if your ex-spouse files bankruptcy, becomes disabled, or defaults on payments like the mortgage? It’s best to not be associated with her finances.
Courtesy: Forbes
