Common Financial Mistakes Made When Divorcing

A marriage is a partnership. Whether both spouses worked full-time jobs or one party provided a substantially greater amount of income, when a marriage dissolves, assets should be fairly divided. This means appropriate child support, spousal support, and similar payments that protect the standards of living parents have built together.

Many people go through the emotional and financial trauma of divorce. Unfortunately, it is easy to overlook an asset, agree to an unfair deal, and compromise your financial survival. By planning ahead, coming up with an asset protection strategy, and working with a compassionate and experienced San Diego divorce attorney, you can safeguard your interests and recover after lengthy divorce proceedings.

Budget and Prepare

Will your children be provided for? What about your career – can you keep your current job, or will you need something that pays more once you are on your own? Sadly, many divorcees don’t consider these factors and struggle to get on their feet. You can, however, plan ahead and budget appropriately to address these issues. Here are a few ways this is possible:

  • Account for all expenses. Everyone knows divorce can be expensive, but many fail to look beyond the up-front legal fees. Children and parents may need therapy, and you may miss work while you are negotiating. You will also have to budget for a new home, clothes, food, and many other essentials you shared with your former partner.
  • Understand the entire process. The effects of a divorce reach far beyond exhausting mediation or a judge’s verdict. Take a look at the bigger picture, such as your current work situation and, if you have any kids, how they are doing in school. Divorce can impact these areas in ways you may not expect.
  • Document everything. From tax returns to credit card statements and bank records, even an apparently insignificant piece of paper can have devastating consequences. For example, if you received an inheritance, your spouse may try to claim a portion of it. Documenting assets like this helps ensure you are justly represented.

These are some of the essentials you will need to succeed through a divorce. Of course, there is also plenty you need to avoid. Be mindful of the following pitfalls, and work with a qualified San Diego, CA family law attorney with extensive successful experience handling all types of divorce cases who can guide you through this process.

What You Need to Avoid 

It’s easy to sit on the sidelines during a divorce or take your spouse at his or her word that possessions have been fully and accurately listed. However, a single asset can include dozens of other issues you must consider – such as tax consequences, liens, debt, and mortgage and insurance payments. Not speaking up about (or completely ignoring) these issues may leave you with some unexpected expenses after you sign an agreement. As you go through this process, keep the following tips in mind:

  • Separate feelings from facts. Feeling a physical possession is yours or knowing an inheritance was left exclusively to you does not matter. This is why documentation is so important; be realistic about your rights, and know when to fight and when to compromise.
  • Be professional. Your attorney is not a psychologist or a shoulder to cry on. Use your time wisely. Consider writing your feelings in a journal to help you through these proceedings, and if you need someone to vent to, try a friend who doesn’t have a personal stake in the divorce.

Appropriate behavior during this time will help you protect your long-term interests. Moreover, a team of attorneys or a mediator can help you and your spouse evenly divide property and ensure asset distribution is not a personal matter.

Seek Professional Advice

Prepare for the worst, but make sure you are fairly represented in and out of court. Reach out to an experienced divorce attorney in San Diego for more information. The team at Boyd Law will help you fight for your property, understand your rights, and navigate this confusing and exhaustive period.