Ending your marriage is a tough decision to make and its consequences can be lasting. And conflicts can easily arise when the couple has accumulated significant properties and assets during their marriage.
For a lot of couples, a divorce can come with it both emotional and financial trauma. However, spouses can overlook an asset, strain their financial situation, and agree to an unfair deal. This makes it important to plan ahead and come up with a strategy to protect one’s assets. Also, couples must work with a reliable family law lawyer in Massachusetts to help safeguard their interests and recover following long divorce proceedings. To avoid making financial mistakes during divorce, here is a guide you couples can consider:
Budgeting and Preparation
A lot of divorces do not take into account important factors such as the needs of the children, careers, and future expenses. As a result, a spouse may struggle on their feet. But, a spouse can plan ahead and set an appropriate budget to address such issues. The following are some ways to make this happen:
- Accounting for all expenses. Divorce can be expensive; however, a lot of do not look beyond the legal fees. Kids and parents may require therapy and a spouse may miss work as they negotiate terms of their divorce. Also, it is imperative to budget for a new house, food, clothes, and other essentials.
- Understanding the entire process. A divorce can involve more than just mediation and court appearances. It can affect all areas of a spouse’s life in ways they may not expect. To prepare for the unexpected, it is important to take a look at the big picture like one’s current work situation and if they have children.
- Documenting everything. Every piece of financial documents can have devastating consequences. For instance, when you get an inheritance, your spouse may attempt to claim a part of it. By documenting assets such as this, you can be fairly represented.
What to Avoid
During the divorce process, a spouse may sit on the sideline or take the word of the other spouse. But, even an asset can include many issues that should be considered including tax consequences, debt, mortgage, liens, and insurance payments. Therefore, a spouse must speak up about such issues to avoid unexpected expenses once they sign an agreement.
In addition, when working with a divorce attorney, a spouse must be professional since the lawyer is not a shoulder to cry on or a therapist. To effectively manage one’s finances during divorce, it is best to be realistic about the situation and know when to fight or compromise.