Finances play an integral part in divorce. Almost all decisions you make during your divorce may impact your finances. Thus, you need to be extra careful to protect your financial stability during and after the divorce.
Below are three financial mistakes to avoid during divorce:
Not making a list of assets and debts
You and your spouse should each have a list of marital assets and debts. Examples of assets include real estate properties, personal bank accounts, investments, business properties and accounts, digital assets and personal belongings like jewelry and art and so on. Your liabilities list should include existing mortgages, car loans, personal loans, credit card loans, medical bills, student loans and anything you owe money on.
Go through your financial documents to ensure you have accounted for everything. You will exchange the lists to confirm they are correct.
Rushing the process
Divorce can be overwhelming. You may want to get it over with to start your new life. However, rushing the process can negatively impact your finances. You need time to double-check the list provided by your spouse, value assets and debts and so on. When you rush the process, you may miss a crucial element that can substantially affect the outcome of your divorce.
Overlooking hidden assets
If you notice any discrepancies on your spouse’s list of assets and liabilities, you need to be concerned. Do not overlook the possibility of hiding assets. Raise the matter with the court to have them produce relevant documents. You should also consider working with a forensic accountant to discover hidden assets sooner.
Financial mistakes during divorce are not uncommon. Learn as much as possible about this matter to protect your financial interests during and after the divorce.
