Our clients facing divorce have several important decisions to make that will have a significant impact on their financial future. Unfortunately, many of our clients feel the need to rush these decisions and to end the marriage as quickly as possible. This can lead to an unfair divorce and lasting implications for the future. It is essential to take your time and to get the advice you need to determine how each decision will affect you and your family without allowing emotions to interfere with your judgment.
Let us help with your difficult financial decisions in your divorce. Call the Law Offices of Paul F. Sherman at (503) 223-8441 or Contact Us for a divorce consultation.
Here is an outline of the most common financial mistakes people make during a divorce.
CONSIDER THE REAL COST.
People facing divorce often make the mistake of only considering the current value of their investments without considering the real cost of liquidation. For example, the sale of a property can result in a sizeable tax obligation or cashing out retirement accounts can incur financial penalties. You are going to need a place to live. You should always consider the real cost of dividing an asset before finalizing your divorce.
AVOID SEEKING REVENGE
One of the most common mistakes made by couples facing divorce is to seek revenge against their spouse. Here a party refuses to cooperate or actively seeks to undermine the other party. Contesting every issue in a divorce not only takes more time, but greatly increases the cost. Bad faith behavior can also result in an adverse award of attorneys fees. You really don’t need to break the bank to get a divorce. Be reasonable. Pick and choose your battles and mediate issues to ensure you are financially stable after a divorce.
CONSIDER THE BIG PICTURE
Make sure that you consider more than just the house and the kids. Consider your day to day expenses. Consider your tax consequences. Consider your retirment. Make sure you consider the big picture before you finalize your divorce.
HOLDING ON TO TOO MUCH HOUSE
A refusal to acknowledge your current financial situation can result in disaster. Trying to maintain the family home and your lifestyle on your own can be quite a challenge. You may feel that you can handle your house payments, taxes, utilities and maintenance on your own. You may quickly discover that burden is substantial and too much to handle alone. Run the numbers. Don’t bite off more than you can chew.
THE COST OF INSURANCE
Not including health insurance into your post-divorce budget can cause serious financial setbacks in the future. Always consider the cost of maintaining insurance following your divorce.
CONTACT THE LAW OFFICES OF PAUL F. SHERMAN FOR EXPERT ADVICE ON YOUR DIVORCE.
We know you have questions and we have answers. If you would like to have more information regarding the financial implications of divorce, call the Law Offices of Paul F. Sherman at (503) 223-8441 or Contact Us for a free divorce consultation.