Going through a divorce is an overwhelming experience, and the financial consequences can be just as distressing as the emotional ones. There are many tough decisions to make and difficult situations to handle before, during and after the divorce. In the midst of all of the stress and confusion, people tend to make several mistakes when going through a divorce proceeding that can cost them time and money. Here are some common mistakes that you should avoid if you find yourself in the middle of a divorce:
Closing All Joint Accounts Right Away
Getting your name removed from a joint account is easier said than done. You need to first check with your bank and learn the process for closing or getting names removed from joint banking accounts. Some banking agencies require that the entire account be closed and new ones be opened from a zero balance with the required deposits. If the account is overdrawn, both or one spouse is required to clear that debt and any other fees before the accounts are closed, regardless of who was responsible for the overdraws.
Before immediately shutting down all of your joint accounts, be sure that you are aware of any fees or financial obligations that need to be paid first to avoid any charges that can transfer over to your new accounts.
Clearing Joint Debt As Soon As Possible
It’s easy to try and make a goal of paying off all of your debts before the divorce is finalized. The problem with trying to do this so quickly is that once a divorce process begins, both parties involved have to reevaluate their finances and adjust to a single income. Unless you have a substantial emergency fund already set up, chances are it’s going to be difficult, between the new single lifestyle, child support, and alimony, to find a financial rhythm. Focus on the most important debts now (current bills in joint names, joint banking accounts, etc.) before worrying about more long-term debt right away.
Using Assets or Custody as a Weapon
This may seem like an obvious mistake to avoid, but between the emotional roller coaster and stress of a divorce, many people lose sight of logic and do this unintentionally. It’s rare that there is a mutual discussion filled with reason, calm and calculated deduction in a divorce settlement. Instead, there is usually one person that is relieved with the results, while the other is very angry and feeling spiteful. It’s during this process that it is best to involve a spousal attorney. Their third party, emotional unattached status allows them to propose compromises that you either must agree on, or face financial consequences.
Being on the angry side of a divorce settlement isn’t easy, and you may feel attacked. The urge to fire back can be overwhelming, but hold yourself back from using objects or people against your spouse since you know they have an emotional attachment to them. It’s a game that will only result in both people being hurt, and create lifelong disdain and drama.
Every divorce case is different. An experienced Glendale divorce lawyer at The Sampair Group will look at the unique circumstances of your divorce and work with you to reach the best possible outcome. Contact us today for a free consultation.