DIVORCE AND MONEY: The Costly Financial Mistakes Women Make When Getting Divorced
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Divorce rates remain high in the United States, with almost 50% of marriages ending in divorce. Divorce can be a costly process, and women can bear the brunt of the financial burden. This article looks at some of the most expensive financial mistakes that women make when getting divorced.
Since divorce proceedings are often time-consuming and expensive, it pays to do some research before proceeding with any legal action. A woman will almost surely need to hire a lawyer familiar with family law in her state, which can be costly and take up a lot of time. Before hiring that lawyer, women need to consider the following possible mistakes:
Not Understanding how to protect yourself if the spouse has a higher income
If your spouse earns considerably more than you, it can be challenging to establish financial protection for you and your children. But there are ways to protect yourself financially if your spouse has a higher income.
These are just some of the ways that you can protect yourself if you have a lower income than your spouse:
— Know or find out exactly how much money the two of you have before the process begins. Doing so can be extremely important if your spouse decides to be untruthful about the number of funds available.
— Do not attempt to hide money. Always be truthful.
— Have or obtain separate bank accounts as soon as feasible. This separation of funds will be helpful in the long run.
— If one does not exist already, create an emergency fund, if possible. This fund will be your lifesaver should you be delayed in getting your case heard by a Judge.
2. Giving up your rights to any family assets
Never agree to give up your rights to any family assets without consulting with your attorney. This is especially true for the family home, any business owned during the marriage, or real property purchased during the marriage.
Make no agreements without legal counsel. Savvy spouses often try to get you to agree to things they know they won’t get once lawyers are involved. Don’t fall for that.
3. Assuming that spousal support will be granted even if you don’t ask for it
Maintenance or alimony is only available to those that request it. In most cases, the higher earner will not offer to pay voluntarily, and neither will the Court know to order it if it is not requested.
The financial information you supply to the Court will most likely indicate your need for such relief. However, it is your or your attorney’s job to make sure to request the spouse and the Court as appropriate.
4. Not getting legal advice about what to do with your investments, including retirement accounts
Never agree, without legal counsel, for each party to keep their retirement accounts. A higher earner will have a higher retirement account. Those accounts will need adequate evaluation before being awarded in the divorce.
Similarly, investments held in either of your names will need adequate evaluation before being awarded in the divorce. This exercise may require the services of not only your attorney but a forensic accountant as well.
This exercise will add extra expenses to the divorce process but will be worth it to your bottom line after the divorce.
In summary, your financial situation after divorce can vary hugely depending on individual circumstances, so it pays for women getting divorced to get expert advice before they make any decisions. Do not bend to pressure, bribery, or threats when it comes to the division of assets. Your concern is your financial future. So it is of utmost importance that the division of assets be handled in a business-like manner with expert input.
