Whether you are considering filing for divorce, or have recently filed a petition, the desire to seek revenge or pummel your soon-to-be ex-spouse into submission are powerful emotions that can drive your decisions. However, in the midst of inflicting emotional damage, you may leave yourself vulnerable to making substantial financial mistakes that could seriously affect your post-divorce life.
As such, avoiding these mistakes should be just as important as satisfying your emotional needs. This post offers a few things to consider when evaluating the financial commitment to a divorce and potential financial settlements.
Consider your budget – This is an important consideration for spouses who were not intimately involved in their finances. You will have to know how much you will need to maintain your household as well as your individual obligations. This may be different from what you knew as a couple.
Consider tax implications – If you are gaining or selling property that has appreciated in value, chances are that you are going to be subject to capital gains taxes, which may diminish the value of your settlement agreement. Simply put, knowing what the tax implications are can help you properly value what you are entitled to.
Stay current on your credit report – It is also important to understand what’s on your credit report, because there may be obligations that you and your soon-to-be ex-spouse may be jointly responsible for that you may not know about.
Be informed about tax returns – Your joint returns can provide a good guideline for what you may be entitled to should you seek spousal support.
If you have additional questions about the financial aspects of your divorce, an experienced family law attorney can advise you.