Biggest Financial Mistakes People Make During a Divorce
Getting a divorce is no walk in the park. It is a complex and often confusing process. When you choose the San Diego Family Mediation Center for your divorce, you have the help of Certified Divorce Financial Analysts that can guide you through the entire process from start to finish. Often, our mediators come into the picture after couples attempt to do divorce either on their own or spend thousands attempting to negotiate between attorneys. During that process, we see many mistakes that people make unknowingly. We have decided to share the most common mistakes so you can avoid potentially delaying your divorce.
When you go through a divorce, you are required to disclose all your assets and debts to the other party. You will need bank statements, retirement account statements, credit card bills, and any other statement that has to do with your finances. These will not be filed with the court or put in the public record. However, these disclosures are required to be made between you and your former spouse. Make sure to gather all these documents at the beginning of your divorce so this does not delay your mediation sessions.
Consult with a Professional
When you are going through a divorce, there are a lot of financial implications. You will be splitting assets and debts. You may be selling or transferring title of your marital home. One spouse may be obligated to pay spousal or child support. All of these actions will impact your short term and long term financial plans. There are severe tax implications to tax filing after a divorce that an attorney may not fully understand. Find a reputable CPA in your area that can go over what you can expect and how to plan your post-divorce finances.
One Step at a Time
Divorce has an emotional impact similar to death. You are mourning the loss of your marriage. While you are going through your divorce, and for some time after, try to wait to make any big life changing decisions. These include moving, purchasing new real estate, or changing careers. The financial implications of moving from a duel income household to single income can be a hard adjustment. Create a budget and take some time to acclimate to your new finances before making any major purchases.
If you are going through a separation or divorce and would like assistance, contact the San Diego mediators at San Diego Family Mediation Center. Call (858) 736-2411 today to schedule your initial consultation.