Ironically, the discussion between the equality of assets is the only time both parties in a divorce will agree.
The divorce process is never fun. On top of the emotional toll, financial missteps during the process can leave you in far worse shape than you intended. Unfortunately, the more intertwined you and your spouse's finances are, the more closely you'll need to pay attention when untangling them.
Typically, you'll have an attorney and financial advisor to do the heavy lifting for you. Nevertheless, experts say that even if you'd rather spend as little time as possible thinking about the divorce, it's worth making sure you understand all the financial decisions being made.
If you're among those pursuing divorce, here are the top five financial mistakes to avoid.
- Keeping a home you can no longer afford
- While staying put means one less change in the midst of an already life-altering event, it often makes little financial sense.
- Taking the house in lieu of liquid assets
- If your ex offers you the house in exchange for them getting comparably valued investments… RED FLAG… think twice before agreeing.
- Not considering the tax implications
- Be wary of tax implications because not all financial accounts are taxed the same way.
- Not getting a court order to your piece of the 401(k)
- If your soon-to-be ex has 401(k) plan, you must have what's called a qualified domestic relations order, or QDRO, to access your share.
- No life insurance on your ex if you're receiving support
- Depending on how heavily you rely on child support or alimony, the death of your ex could leave you in a financial jam.
If you're facing a divorce make sure you have all your financial ducks in order. Read the full article for a more information about the five financial mistakes to avoid. Going through the divorce process is never easy. If you're looking for an experienced attorney to help you receive equal assets contact David Veliz at Veliz Katz Law.