Divorce can bring huge financial issues that could threaten your financial stability. This is because people might lose a considerable portion of everything that they’ve bought or saved their entire lives. This includes savings, retirement benefits, houses, businesses and other investments.
In fact, Pinderreaux.com, a London-based law firm, says that a clear divorce strategy is needed to protect your assets. This is why couples seek the help of divorce solicitors to avoid huge financial mistakes.
Here are some pitfalls couples should watch out for.
Getting a Combative Lawyer to Punish a Spouse
Unfortunately, some couples approach divorce with extreme emotions. They want to cause their spouses the worst possible damage.
This isn’t a good idea two reasons. First, with the exception of special cases, a court does not punish a spouse for just disagreeing with you. Second, hiring an attorney with the intention of punishing a spouse often leads to higher costs. This, in turn, reduces the assets split between the couple.
Lack of Financial Knowledge
Another grave mistake is not being familiar with family finances. For instance, if one spouse handles all the financial matters, including the income and assets, he or she might have an advantage during divorce settlements.
Therefore, if divorce seems inevitable, it’s best to get copies of account statements related to charge cards, tax returns and bank accounts. Additionally, since your spouse may choose to retitle or liquidate marital assets without your knowledge, consult a lawyer for appropriate legal strategies. This may include notifying the asset or property holder or getting a restraining order to prevent the sale of any property.
The stress of the divorce can be overwhelming and push you to your limit. But if you are proactive, you commit fewer mistakes and make the case easier to handle. Avoiding these financial pitfalls can help you achieve a favourable outcome and move on from this difficult time.