There are many financial mistakes you should avoid while going through a divorce. Many couples going through the divorce process in Utah make unwise decisions regarding their finances often in the heat of the moment. Divorce and family conflicts can be intensely emotional, in many circumstances emotions get the better of people and cause them to make ill advised decisions regarding money, homes, retirement accounts, investments, taxes, or other assets and debts. In order to avoid common financial mistakes and generally bad decisions, you should discuss your particular circumstances with a Salt Lake City divorce lawyer in our office today. For general information that makes good sense in most divorce cases, read the discussion below.
1. Make Decisions Based on Reason Rather Than Emotion
It seems every week, if not every day, we speak to clients going through a divorce who want to give up right from the beginning. Because divorce can be so emotionally draining, some people think it best to just give the other party all the assets to avoid the conflict. This is never a good idea. Almost always when a party willingly gives the other everything they have, regret inevitably follows. This type of mentality is based on emotion alone and is focused on the short term. Many clients come to us long after their divorce is final wanting to modify their decree because they realize they made a huge mistake based entirely on their emotions at the time and now want to change something. Unfortunately, you may not be able to change your decree once it is in place. Getting what you want up front is paramount. Don’t make the mistake of giving up before you have even begun. Before agreeing to anything, consult with a Utah family law attorney with Utah Divorce Hotline now. Our team can give you a rational and objective view of the financial matters in your case.
2. Plan for the Long Term
There is life after divorce and you need to be sure you are able to meet your financial obligations moving forward. Next to emotional based mistakes, the next most common mistake is being short sighted. This often occurs with regard to possession of the marital home. In many cases a person may believe they should keep possession of a home purchased during the marriage. However, a home can be a huge financial obligation and it may make no sense at all for a person to keep it. Often people are concerned with living arrangements especially long term. However, if a home will be more than your pocket book can bear after you already have to stretch to meet other post divorce financial obligations, seriously consider selling or otherwise dealing with the house. If you are facing an alimony judgment against you, keep in mind up front pay offs may hurt initially, but could ultimately save you thousands of dollars. We can often see the bigger picture for clients and propose financial resolutions which can save you long term pain. For more information, call and speak with a Utah divorce attorney here today.
3. Failing to Think About Taxes
Finally, a very common mistake made by people in divorce is failing think about marital taxes and the tax consequences associated with financial matters. One big area where this is often an issue is when one spouse is self employed. In many cases there may be outstanding tax liabilities on a business and a divorce spouse could be left holding the bill. Another issue to consider is retirement benefits. If retirement is being divided and once spouse is taking out the funds, there will most likely be heavy tax penalties associated with the transaction. Probably most importantly, if you have children you need to address the tax deductions and other tax benefits associates with claiming the minor children. Not addressing these child tax benefits and other tax issues could be detrimental.
Utah Divorce Law Firm – Salt Lake, Provo, St. George
For a complete consultation concerning your financial matters and other divorce issues, call our Utah Divorce Law Firm today. With offices in Salt Lake, Provo, and St. George, we can help you get on track right away. Call us anytime day or night, our lawyers are standing by. We look forward to your call or email.
