Filing a divorce already costs much, and it is easy to inflate it even more if you make rushed decisions and let emotions rule your choices. Moving quickly through the process can also be a costly mistake, so it is best to consult your financial advisor and divorce attorney.
If you don’t want to make your divorce more expensive, it is best to follow these recommendations.
Split as Fairly as Possible
Many divorcing couples don’t want to divide assets equally or have a different view on what it considered fair. It is not advisable to agree on getting a 40% settlement on retirement assets and give 60% to your soon-to-be ex-spouse simply because they’re older, for instance. To avoid problems later on, aim for a 50-50 division as much as possible.
Think About the Taxes
One common mistake splitting spouses make is neglecting taxes during the process. Financial advisors and divorce attorneys in Ogden suggest evaluating the value of retirement assets, like individual retirement accounts and pension plans with the help of an expert. Keep in mind that there will be a significant difference in tax amount in either pretax or post-tax assets.
Don’t be so Emotional
As divorce can make you feel guilty, you may seek reconciliation by buying your kids toys and gadgets. Spending more or going overboard is not the answer, however, as you will take in more debt if you cannot afford those things. The best thing you can do is to accept that the lives of your kids are changing, too, and you need to help them adjust.
Accept that There is no Perfect Split
While you may want to aim for fairness, you have to realize that there will never be a perfectly fair split. If your spouse, for instance, want to have the custody of a gadget or an appliance that cost several dollars, don’t spend more to get it back. Your spouse may have something amazing, but chances are you can also have something that your spouse wants to get custody of. Negotiating well doesn’t always mean making both parties happy.
Divorce missteps can make the process more costly, so it is best to think through your actions first. Getting legal and financial assistance can help you come up with well-thought decisions.