“Opposites attract.” True, but a lack of financial compatibility is one of the leading causes of divorce, says Huffington Post. It’s a catch-22: The very conflict – money management – that helped cause the divorce is also a factor in completing the divorce. It’s time to put the past behind you. You made financial mistakes during a marriage. Now, you want to avoid financial mistakes during divorce.
Collaborative divorce offers a way to stop the arguments and begin the conversation. It’s for couples that want to end their partnership as easily as possible without adversarial attorneys and courtroom drama. In order to fulfill your collaborative divorce mission, you may need communication coaching and financially neutral professional guidance.
Financial Mistakes During Divorce Can Be Avoided
Your financial neutral professional will offer several financial considerations for you. As a couple, you’ve made money choices based on your partnership. And you may have made some mistakes along the way. To avoid financial mistakes during the divorce, you should take into account:
If child support or spousal maintenance is appropriate, what happens if you or your ex becomes disabled or dies? Additional disability/life insurance may be wise.
One of the frequent financial mistakes during divorce is to assume the custodial parent “deserves” the family home. This is a very emotional decision. Sometimes, a 50/50 split (involving a rental property, for example) isn’t as fair as it seems. A neutral financial expert can help you determine what to do with the house when you divorce:
- Sell it
3. Retirement Assets
Whether a spouse has acquired a defined benefit plan such as a pension, or a defined contribution plan such as a 401(k), these assets have value. It’s critical to find the best way to split retirement assets and this could be the area of your settlement with the most possibility for tax savings if done properly. Your neutral financial expert can help you get the numbers right.
4. What’s New?
List your current expenses: “where the money goes.” Then, create a budget that incorporates new expenses, which may include:
- Cable, cellular, other entertainment/communications packages
- School transportation
- Tax changes
- Two residences for one family
The Collaborative Divorce Goal: Building a Better Future
The Arizona collaborative divorce process is built on what’s best for both of you and your family. That foundation lays the groundwork for a good ending and a better new beginning. Financial mistakes during divorce can be prevented using a neutral financial professional. She or he will guide you through the process and help you focus on long-term, lifestyle goals. This neutral guidance can minimize potential financial mistakes during divorce and offer state-of-Arizona-specific options for the future.
Best Legal Choices for Your Arizona Collaborative Divorce
Your divorce is your business. Collaborative divorce can offer you privacy and protect your family unit from public scrutiny. But like any business, you want to avoid pitfalls and build a base for your “new and improved” life.