Divorce is not something couples wake up one day and decide to do, especially after staying together for a long time. You first have to assess all the circumstances and think of life after that. It becomes even more stressful when you have kids.
All the same, if you have decided to move on, here are money mistakes a top Santa Fe divorce lawyer says you must watch out for and avoid. Take a look.
1. Underestimating your expenses
Some people can only tell what they earn as a monthly income, but they find it difficult when asked to state their monthly expenditure accurately.
Remember, you will have to take into account all the expenses you will have to make during your divorce. Therefore, it’s critical that you create time and draft an accurate and realistic budget of your monthly expenses.
2. Assuming equal share is fair share
Here, be sure to compare apples with apples. When you can, hire divorce attorneys for advice. Remember, some assets gain value over time, while others lose value.
So, while sharing them based on the current market value might reflect an equal distribution, it might not be the case a few years down the line. One of these parties might eventually find themselves in serious financial predicaments later on.
3. Deciding financial issues one at a time
By looking at each asset one at a time — the aspect of taxes, investment gains, and losses, inflation and so forth — you realize they are not as comprehensively covered as when it’s done from a bigger composite picture.
By looking at a bigger picture of all your finances, you will likely make not just prudent financial decisions, but understand how each affects the other and the results after that.
Finances are usually a sensitive aspect in almost every situation. Divorce is not an exception. Therefore, it’s essential to have a financial advisor guide you through asset distribution part of the divorce, especially if you lack knowledge on asset value and investments.