Make these 4 considerations for improved financial help during your divorce from your spouse.
Even with help from friends, family, and an experienced divorce lawyer, there are many "traps" that a person can fall into during the divorce process. Our Raleigh law firm has found that planning post-divorce finances is one of the most common pitfalls that a person faces after the smoke has cleared.
Let's face it, most people aren't going into their divorce with all the answers. That is why there are thousands of articles on divorce all over the internet. Unfortunately, even with all these resources, most divorcing couples find that they need help to get through all the paperwork and property distribution.
Here are some tips to help you avoid financial trouble from your divorce.
Know about Your Pre-Divorce Household Finances
In a lot of marriages, one spouse is responsible for taking care of paying the household bills. One person managing the finances is perfectly acceptable, but if you are the spouse that is not tasked with this duty, then you could be in for a surprise when the time comes for you to make the payments.
Being smart about finances and knowing how you fit into the household's financial standing is a good thing to know. Stay involved to avoid becoming a financial victim because of divorce.
Whether that means not knowing:
- Which bills are due on what dates
- How many bills are actually due
- The monthly budget cost
- Joint earnings
Keep Accurate Financial Records During Your Divorce
Make sure you are keeping track of all things financially related to avoid losing out on your fair share of assets during the property division and equitable distribution process.
Here are a few items to keep in your records:
- Pay Stubs
- Bank Statements
- Checking Account
- Savings Account
- Retirement Accounts
- Credit Card Statements
- Tax Returns
Keep an Accurate Personal Budget to Avoid Overspending
The cost of living can be underestimated by individuals who were not in charge of the household finances before the divorce. Make sure you plan ahead to make sure you will be strong enough financially to keep a balanced budget. Keep in mind that you may have car trouble or issues with your home, like a broken air conditioner. Set aside some extra savings should unexpected charges or expenses arise.
Be Aware of Tax Requirements
Both your former spouse and you are responsible for taxes due. While most couples have simple finances, others have more complicated situations, such as owning a business that makes dividing tax responsibility more difficult.
Even after settlement, you can be required to pay tax on the assets you received as part of your property division and financial award. Make sure you don't accept an offer that you can't afford to pay for.
For example, if you are the spouse that is awarded the marital home, make sure that you are not left in a position where you cannot afford the expense of owning said home. Take into account all your financial
Do Not Hire an Overly Aggressive Attorney
Hiring an attorney full of bravado, that speaks a big game and makes you think you'll "take your former spouse to the cleaners" might be your downfall. Often, hiring an attorney like this only means that YOU will be taken to the cleaners!
Most of the time, this is a high-cost lawyer claiming they can get you a big divorce settlement, all the while, they need to be paid for their services. In the end, you may not be awarded any more alimony or child support than you would have gotten with a less expensive attorney, but now you've overspent and are coming out with less in the end.
Do your research and hire a divorce attorney that won't break your budget, but that can effectively manage your case.
Speak with a Raleigh Divorce Lawyer about Your Divorce Case
The best way to ensure a successful financial outcome to your divorce case is to have a professional attorney at your side. If you are unsure of handling expenses, contact our Raleigh law firm to discuss the cost of your divorce case by completing the contact form below or calling 919-301-8843