Most couples encounter two major issues in a divorce: parenting time and financials. Typically, parenting time is resolved well before the end of a case, leaving the property and debt division center stage.
There’s just one problem: the financial issues are what push many cases from settlement to litigation. In fact, the most significant mistakes couples make in negotiating a divorce are almost all related to financial issues. And, when pushed to the limit, financial issues can leave both you and your soon-to-be former spouse in a tough position once your divorce is over.
Read on to learn 3 of the most significant financial mistakes in divorce and what you can do to avoid making the same in your case.
1. The Marital Residence
The idea of divorce is overwhelming for most people. The idea of divorce and selling the marital residence to move is too much for almost any individual. However, wanting to remain in the marital residence is typically a mistake.
After all, the home may be too large, or may no longer be affordable when you refinance. As such, you shouldn’t get too attached to the idea of staying in your current home. Doing so may break down settlement negotiations and may not be in your best interest in the long run.
2. The Big Picture
It can be tempting to make demands or get bogged down by issues that may seem important now, but aren’t. It’s also problematic to make decisions now that may seem to make sense, but later don’t.
For example, if you want to remain in the home, you may give up equity in a retirement account do to so and equalize the property value of the settlement. However, the retirement account offers benefits, like return gains, over time that the house doesn’t. So, while this decision may seem like a good idea of the time, the big picture reveals something else entirely.
3. Think in Terms of Cost
If you’re particularly attached to a piece of property, a bank account, or another asset in your case, it’s important to consider whether it’s worth fighting for. Too many individuals latch on to one piece of property or another asset without considering whether it’s worth the attorney’s fees to do so. After all, you can easily spend thousands to win a piece of the settlement that isn’t worth much.
Always separate emotion from pieces of your property settlement. Take a step back from what you’re fighting for to consider whether it logically makes sense to do so or whether you’re doing so only because you want to “win” or get back at your spouse.
Doing so can save you tens of thousands of dollars, and your sanity, as your case unfolds.
Don’t Make Common Financial Mistakes in Your Divorce
As the client, it’s all too easy to get bogged down in the emotions of your case and allowing those emotions to influence your decision-making abilities. However, doing so can lead to financial complications, especially after you’re a few months or even years into your case.
If you’re struggling to determine which assets are worth fighting for, Lawrence R. Surinak Ltd. can help. Larry has over 36 years of experience negotiating divorce settlements for clients in DuPage, Will, Kendall, and Kane Counties and offers a realistic, transparent approach to his clients.
Take advantage of your free, 30-minute consultation by contacting Larry at 630-470-9990 or by filling in our simple online form. We look forward to speaking with you and helping you navigate the complicated financials of your case to help you arrive at a settlement that makes sense for you!