With divorce comes a lot of crucial decisions. You know you must put in more effort to protect your financial health, but what steps should you avoid?
Fox Business explores common financial blunders divorcing individuals make. Learn what moves to make and which to reconsider.
Not understanding state laws
Divorce laws differ across state lines, and not knowing them may cost you more than you realize. Inequitable distribution in states like Illinois, courts consider assets a couple gained during their marriage, but they do not split assets evenly. For community property states, all assets a couple will obtain during their marriage could qualify for an even split.
Fighting for the marital home
Before fighting for your marital home, double-check your income as a single person. You relied on two incomes for your mortgage. If you want to remain in the house while your spouse leaves, you must have the financial means to keep making payments. Even if you receive alimony, your soon-to-be-ex-partner could miss payments.
Not providing proof of retirement account contributions
Could the court consider money in your retirement account as marital property? If so, it could qualify for division during your divorce. Gather quarterly account statements from the years before you married. That way, you have proof of how much you had in the retirement account before your marriage. Protect your interests by not withdrawing money from your retirement account until you have the court’s permission.
Do not make your post-divorce life harder than necessary. The right financial tips safeguard your monetary interests and your mental peace of mind.