During a divorce you are going to be faced with decisions that are going to affect your financial security. Oftentimes divorcing spouses make and deal with mistakes when handling finances. Let’s talk about the kind of issues that you might want to bring your divorce lawyer.
One of the biggest mistakes that a divorce lawyer see their clients deal with, is ignoring or underestimating the expense of your divorce. Most people do not know what they earn each month but they’re not going to be able to explain whether money goes. Not unless they are extremely adamant about their budgeting and tracking system. Not many people are.
So if you are somebody who does not already focus on budget you should take time to write down all of your expenses and develop a realistic budget for yourself. You should ensure that what you are taking in account as your income for your budget is only what you bring in, as you cannot depend on alimony or spousal support from your spouse before it has been court ordered.
When you are considering the cost of your future living expenses you should ensure that you take inflation into account because if you ignore inflation you’re going to be underestimating your future needs and find that you are not able to maintain the quality of life you were used to.
Another common thing that couples find themselves handling with their divorce lawyer, is believing that the parent has more custodial time with the children to keep the family home. While it is very nice to keep your home able to stand one place, sometimes this is not going to be financially possible. You might want to have children in the standard school district in the home that they grew up in but this is often not affordable for one parent, when you had two people paying the mortgage. No matter how attached you are, your home is going to be critical to have a realistic sense of whether you can afford it. Even if you give up everything in order to keep the home, you may find out that later you cannot cover the mortgage, property taxes and maintenance you could find yourself in serious debt.
Couples often assume that equal division is fair property division. You should understand that assets value is not necessarily going to be defined by the buyer limited to its current market value. Some mindsets are going to generate income such as rental property or bonds in the going to be more than their market value due to that. Not instant you would want to agree that you spousal receive property of equal monetary value only if you are comparing apples to apples and not apples to oranges. An example of this is if you are both receiving a property to live in, one of you keeps the main house and the other person is going to move into the other property that the two of you once owned. Because of your property, the asset value is exactly what is expected of the market.