Personal Finance

4 Financial Mistakes To Avoid During Divorce With Kids

Divorce With Kids

Divorce With Kids

After years of trying to make it work and ultimately deciding that calling it quits is in your family’s best interest, divorce may be on the horizon for you. While many people find themselves going through incredibly horrific divorces, in some cases, even being accused of kidnapping their own children, there are others who manage to make the right moves.  As a result, they avoid losing all their money on a lengthy and emotionally drawn out divorce.

Although your emotions may be running high, it’s critical that you keep a clear mind in order to make the right financial moves. Here are some of the biggest mistakes to avoid during your divorce, which could seriously affect your bank account.

Failing To Hire a Lawyer

A lawyer is a critical asset during a divorce. They’re able to walk you through the complicated ins and outs of family law and guide you through how you should react to any threats from the opposing side.

Failing to have knowledge of the law and what your rights are could result in a serious financial loss.  You may end up losing custody and having to pay significantly more child support than if you had shared custody. Even if you hope to have an amicable divorce, a lawyer is critical in order to ensure that you’ve settled things in a legally binding manner.

Hiding Assets

The last thing that you should do is try to hide your assets from your ex-partner.  This is illegal and could result in getting into severe financial trouble. Instead, be upfront about your assets and report your income honestly.

Divorcing in good faith will result in a less drawn-out battle which will only damage you and your kids in the long run. You don’t have to be best friends with your ex or even friends at all.  However, you should try to be fair and honest when dividing your assets.

Failing To Understand Your Liability For Their Debts

A lot of people in the process of divorce don’t realize that they’re responsible for half of any debts incurred during the time that you were married.  Credit card companies don’t care who’s name is on the credit card.  If you were married, then you are attached to that debt. You’re responsible for paying it off just as much as they are.

It’s critical that you understand this and budget it into your finances.  Otherwise, you could find yourself in serious trouble with lenders.

Failing To Look at Divorce Settlement With Financial Advisor

Before assuming that everything looks good on your settlement, it’s best to have a financial advisor go over it with a microscope.  Often things look alright from a distance; however, a financial advisor is there to consider the long term value of what’s on your settlement.