When people choose to end their marriages, it is probably not a decision they come to lightly. Most people give it serious thought after considering how it will affect them from an emotional standpoint. However, some neglect to consider the potential financial consequences of divorce. Anyone here in California considering a divorce may wish to heed the advise of one professional who says that there are five mistakes that people frequently make in divorce proceedings that can have a significant financial impact.
Though it is common these days to share everything on social media, experts advise against doing so. One recent example involves a man who claimed he wouldn’t be able to afford his potential divorce settlement. Then he posted online about a lavish vacation and recent work success, giving his ex all the ammo she needed to prove her case.
Another potential error is the failure to assemble all paperwork relating to financial matters, such as account numbers, social security statements or proof of payment for major assets like a home. Doing this can help with tax and retirement planning. In a similar vein, many people don’t account for the tax consequences that come with certain assets. Some assets may seem very valuable, but they can come with a larger tax burden. Experts also warn those who are divorcing to close joint accounts and ensure that their name is removed from any debt for which their spouse should be responsible.
The final error many people make with divorce is believing that they will be forced to fight out every detail in court. Mediation might be a better option for many people here in California as it can expedite the entire divorce process and potentially save people money. If a marriage has to end, ideally, it can be done in a way that is amenable to all parties involved.