Unfortunately, there is a common misconception that divorce is solely an emotional matter. However, when you begin this process, you’ll find that there are a number of critical legal and financial decisions to make. It’s incredibly important to understand the most common financial mistakes made during divorce to help ensure you can set yourself up for financial success when the process is done. The following blog explores what you should know about the most frequent errors, how to avoid them, and the importance of working with a Long Island divorce lawyer during these difficult matters.
What Are Common Financial Mistakes Made During a Divorce?
If you are going through a divorce, one of the most common mistakes that can impact your finances is rushing through matters. Though you may be eager to get everything finalized and put this chapter of your life behind you, failing to carefully complete steps can have negative consequences. For example, when you and your spouse must calculate your expenses to determine the standard of living for matters like alimony or child support, failing to take the time to make these considerations can result in lower payments than what you actually deserve, or overpaying which is an unfair financial burden on one party.
Another error that can negatively impact you is failing to properly budget for your new cost of living. Undoubtedly, you’ll incur different expenses as a single adult than you would as a married couple who has intertwined finances. As such, it’s in your best interest to take the time to carefully consider how much you can spend on certain expenses. It’s also important to ensure that you take other costs, like healthcare premiums, car insurance, and utilities into consideration, as these are often forgotten. Thorough budgeting can help set you up for financial success following the dissolution of your marriage.
Can an Attorney Help Me Protect My Finances?
You may be surprised to learn that one of the most common financial mistakes made during a divorce is foregoing the guidance of an attorney. Unfortunately. many who file for divorce believe they can do so without legal representation. While there is no law that states those divorcing must have legal representation, it is in your best interest to seek guidance.
When you file for divorce, there is a litany of important financial and legal matters that must be decided. If you are unfamiliar with your rights, you may make an error that can negatively impact your finances for years following your divorce. For example, without discussing the matters with an attorney, you may not know that you are entitled to a certain asset or you may end up receiving significantly less alimony than what is fair. However, by working with legal representation, you can have the best chance at a favorable outcome.
