There are several mistakes divorcing spouses should avoid making so that they do not jeopardize their financial future.
When couples in Texas decide to end their marriage, they often experience many difficult emotional issues as well as financial ones. Before reaching a successful resolution, there are several mistakes divorcing spouses should avoid making to ensure their best financial interests are protected.
Fighting for the family home
During the divorce process, spouses may be hesitant to give up the family home in order to avoid inflicting too much change on their children. In other situations, spouses may not want to move out of their home because they have put a significant amount of work into it throughout the duration of their marriage.
Whatever the reason, USA Today states that divorced spouses who choose to remain in the family home may find that making the mortgage payments and maintaining the property are responsibilities that are difficult to handle independently. Spouses should take these costs into account before fighting for their home during the divorce process.
Not considering the costs of liquidation
When assets are divided, many spouses only look at the current value of investments they own without considering the costs associated with liquidation. For example, if a wife is awarded a rental home investment property and later decides to sell it, she may have to pay for depreciation recapture and capital gains. Additionally, she may become responsible for realtor fees and other sales expenses. USA Today states that spouses should always calculate the cost of eventually selling investments they acquire once a settlement is reached.
Failing to plan for post-divorce life
Although the divorce process can be time-consuming, divorcing spouses should not forget to plan for post-divorce life. According to Time, those ending their marriage should make sure that they consider issues like securing health insurance, transferring pension benefits and other financial matters before their divorce is finalized.
Focusing on short-term issues
When couples divorce, some are often so anxious to put an end to their marriage that they fail to address the benefits and disadvantages of certain financial decisions. For example, if a husband choses to keep the marital home in exchange for funds in a retirement account simply to settle a disagreement, he could miss out on savings that could have a large impact in the future. Those in the midst of the divorce process should always consider the long-term effects of their decisions.
When couples in Texas divorce, they often worry about how mistakes like these could impact their financial wellbeing in the future. If you and your spouse have decided to end your marriage, reach out to an attorney who can help you maintain your best interests. The Law Offices of V. Wayne Ward frequently employs the use of experts in finance and planning to assist in this troublesome area.
Keywords: divorce, litigation, property, division