It is no secret that the number one issue couples fight about is money. But sometimes when a couple decides to divorce they may want to go about it in a nice, friendly, non-contentious way, but there is such a thing as being too nice in your divorce, say financial experts. There are a number of financial mistakes couples make when seeking divorce, one is assuming your soon to be ex-spouse is in a position to look out for your best interests, says an attorney who has represented a number of high-profile celebrity clients.
Once a decision is made to divorce it can be difficult for some spouses to rock the boat by requesting the other spouse show proof of finances, such as retirement accounts and other investments. On the other hand, how can you determine exactly what the marital property is before agreeing to the division of that property? Couples can be naïve and think they know all there is to know about a spouse's finances, as well as their own.
For example, one mistake often seen is a person deciding to keep the house for the sake of the children in exchange for equity or giving up assets or cash. And they do this without even considering whether or not they can afford to stay in the home after the divorce. An attorney can help you gather the resources to accurately determine what you will need after the divorce and that includes child support and spousal maintenance or alimony, if applicable.
Another factor not often considered by divorcing spouses is the tax implications of a divorce. For example, deciding who gets to take the tax deductions for dependent children. Again, a divorce attorney can ensure all factors are considered for what is in your best interest, without excluding things because they are uncomfortable to confront or difficult to prove. Child support is another difficult calculation to make but it need not be if you know all the facts and state laws and guidelines involved.
A divorce attorney works for you and only you so it is important to discuss all of your financial concerns with him or her so the big picture is well understood. If your goal is a friendly divorce, an experienced attorney can help you achieve that goal while at the same time ensuring your financial best interests are protected when the final divorce settlement is reached.
Source: Reuters, "Divorce mistakes you can make by being too nice," Geoff Williams, June 26, 2012
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