Financial Mistakes to Avoid During a Divorce
As you go through a divorce, there are a number of decisions you will need to make that could have a minor to significant impacts on your overall financial health and security. Below are a few common mistakes to avoid as you go through this process:
- Failure to budget: You must have a good idea of your future financial picture before the divorce is final. This means closely analyzing your expenses and coming up with a new budget that will allow you to live within your means. The reality is that you may no longer be able to maintain your current standard of living.
- Believing fair is equal: There is not necessarily anything “equal” about the equitable division of marital property. Courts will make their decisions based on each spouse’s overall financial situation moving forward from a divorce.
- Not looking at the big picture: When it comes to analyzing post-divorce finances, you simply cannot pick one issue at a time to settle. Take a full, comprehensive look at all of your finances so that you can make accurate projections of your future needs.
- Failure to understand your debt responsibility: Marital debt works the same as marital property and assets. Even if you personally did not incur credit card debt during your marriage, you are still liable for any debts incurred by your spouse. This means you will share responsibility for paying back those debts.
For these reasons and many others, it’s important to engage in sound financial planning as you prepare for a divorce. For further guidance, speak with a trusted Long Island divorce lawyer at Bryan L. Salamone & Associates.