Couples often treat divorce as an escape from the troubles of the present. For others, it’s a positive transition into a better, more satisfying life. Either way, the process is anything but fast and cheap. It generally results in a significant financial for all parties involved.
The advantages of divorce are pressing, but so are the risks. Whether you are the breadwinner, a stay-at-home parent, or a financial equal of your partner, the stakes can be high.
In your preparation for a divorce, it’s critical to know about all financial circumstances of your marriage, divorce lawyers from Gordon N. Shayne explain. This includes shared debts, like credit cards, loans, and mortgages. You should also have a list of all properties you and your partner own or have invested in, among other things. Or else, you’re at risk of committing these mistakes:
Not having an inventory of your assets
Financial experts stress the importance of knowing your family’s assets and liabilities. Draw up an inventory of valuable property, not just shared real estate, but also furniture, collectible items, cars and the like. Get access to tax returns, household bills, statements from investment and retirement accounts, and other important records.
Insisting on keeping the family house
It’s hard to give up the family home, especially if it comes with sentimental value, but fighting for it can make you lose money in the long run. It had taken the joint financial power of you and your partner to run the household – doing it on your own can be far too expensive. It can eat into your savings, drain your cash flow, and may only delay the inevitable relocation, which you should’ve done in the first place.
Failing to consider unexpected expenses
Beyond housing, think about other expenses, like clothes, food, health insurance, etc. All of these are affected by divorce, so make sure you can pay for them without any financial support from your ex-partner.
In divorce, one thing is certain: you will face unforeseen expenses. The ideal way to go about the process is knowing as much as you can, as early as you can.