In today’s society divorces have become more popular and more expensive. Attorney and court fees can cause a divorce to be overwhelmingly expensive. However, certain money mistakes are avoidable during the divorce process which can help alleviate some of the financial burdens. If you are worried about your financial security after a divorce, please contact a dedicated Shelby County, Tennessee Divorce Lawyer who can help you avoid making common money mistakes.
How to avoid making money mistakes when getting divorced?
If you are looking to avoid making common money mistakes during your divorce you should consider the following:
- Being in the dark about your finances. If you are in the dark about your finances, you are at a significant disadvantage. Your spouse could try to hide assets, which can cause you to receive an unfair portion of your marital assets. It is imperative to have copies of your financial statements and records. Ultimately, you should have a thorough understanding of your finances.
- Overusing your lawyer. The divorce process can be extremely emotional and overwhelming. It may be difficult to open up to friends or family members as you don’t want to get them involved. This may result in you confiding in your divorce lawyer. However, this can cost you a pretty penny. Every phone call will cost you a substantial amount of money. Try looking for advice elsewhere.
- Underestimating your expenses. A common money mistake couples make when going through the divorce process is underestimating their living expenses. It is important to create a budget that takes inflation and future living expenses into account. If you forget certain expenses, you may not be able to cover all of your bills after the divorce is finalized.
- Not considering unsecured debt liability. A huge mistake you can make during the divorce process is not understanding your liability for unsecured debt. The court divides marital property during the divorce process, including any debt incurred during the marriage. Both spouses are equally liable and responsible for paying off that debt. Credit card companies do not care about your situation. They care about getting their money. This means they can still approach you about your ex’s unpaid portion. It would be wise to try to have all your debts paid off before the divorce is finalized to protect yourself from this liability.
- Neglecting to consider a Qualified Domestic Relations Order (QDRO). Not many individuals consider QDROs because they don’t truly understand what it means. This is a huge mistake as it has serious financial benefits. You should think about requesting a QDRO as it can allow you to receive a portion of your ex’s retirement plan benefits.
Divorce can have a significant financial impact, so it is imperative to prepare for it. If you are seeking a divorce, please don’t hesitate to contact one of our trusted and determined team members. Our firm can assist you with making the right decisions about your finances to avoid making common money mistakes that could affect your financial standing after a divorce.