MISTAKES can be made when getting a divorce, and it can end up costing you a lot of money.
But there are known things to avoid when going through the tricky legal process, and a way to save thousands in the process.
Mistakes can be made when getting a divorce, and it can end up costing you a lot of money[/caption]
It’s never easy to go through the divorce process, and emotions can get in the way.
Bari Weinberger, owner of Weinberger Divorce & Family Law Group in Parsippany, N.J. says: “People making such mistakes often regret it long term, because they can be irreversible.”
So to save yourself time and money, there are five ways to handle your divorce better from a financial perspective.
HEAVY SPENDING
One of the most common mistakes made in the divorce process is to not wait until things are more stable to make big purchases.
Some spouses may use their divorce settlement on something extravagant to make themselves feel better.
Divorcing partners are always advised to postpone big investments until their financial and emotional live stabilize.
If divorce seems likely to be on the horizon, financial flexibility is your greatest ally.
On top of this, expensive burdens like a new house can greatly complicate diving the assets during the divorce process.
HIDDEN ASSET MANAGEMENT
A common and sneaky tactic in divorces is to hide assets in advance so they don’t get put on the dividing table.
This could be done by giving them over to friends or relatives until the divorce is made final.
It can be even harder to find hidden assets if couples keep part or all of their finances separate.
It might sound extreme, but using a forensic accountant or even a private investigator could help you uncover hidden assets you could be entitled to.
It is also suggested that if you file for divorce first, you are placing yourself in a better position to negotiate terms that require an even division of assets discovered.
COSTLY EMOTIONS
Emotional battles over things like child custody can inflate the divorce tab.
Kanye ‘needs an NDA’ if he divorces Bianca: Family lawyer
The U.S. Sun spoke to family trial lawyer Holly Davis who explained the need for an NDA … and why Biana should ask for more than $5 million:
“There are some behaviors that a wife can no longer condone. There are some controlling patterns that a wife may no longer accept.
“It appears that Bianca Censori has finally reached her limit with Kanye, a period of time many have predicted would come earlier than today.
“If Kanye cares about avoiding public embarrassment, which he may not, he will want to negotiate an NDA with Bianca to avoid an expose into some of the more darker parts of their story, including any possible criminal activity.
“Given Kanye’s current attitude towards free speech, it would be fascinating to see if he believed it applied to divorce proceedings, and in favor of his wife.
“I highly doubt that Bianca will stick to any verbal agreement for $5M, which seems like a low figure for what she managed during the marriage.
“The only enforceable contracts are written ones, so if they did have a verbal agreement that benefits Kanye, he should be on his best behavior in the divorce to ensure she doesn’t change her mind.
“Any attorney she hires or speaks with will assess her case to determine if the $5 million figure is too high or low.
If it’s high, they should settle. If it’s too low, she should change her mind on that agreement in light of receiving legal advice.
“That’s why people and celebrities should hire lawyers before discussions on ultimate terms with your spouse, you might accidentally agree to a lower number than what you deserve before you knew any better.
“Kanye will always find some lawyer to represent him, but whether this lawyer will remain on the case will be the issue.
“Most of the time, lawyers learn that Kanye does not follow their legal advice, putting them in a precarious position.
“He will likely be representing himself, whether he has a lawyer or not, because he cannot put his impulsivity and opinions second to legal advice.”
Maggie Kim, a musician and writer of “Divorce or Die,” a Substack newsletter, had to undergo a divorce that took seven years to complete.
She says: “Emotions were the biggest reason that my divorce and custody fight took seven years.”
To save yourself this, Kim advises you to lean on those around you for emotional support.
This way, the divorce process can become more logistical and you can remain on your best form.
MISHANDLING ASSETS
Illiquid assets can often make up a large portion of a divorce settlement.
This includes things such as stock options and real estate, and it can be hard to turn them into cash without losing value.
Going back to financial flexibility, being liquid means you have more freedom to negotiate and more cash to spend if you have to.
One thing you can do is take into account liquidity constraints when deciding how the marital assets are divided.
There could be a case where illiquid assets may constitute too big a chunk of a couple’s assets for one spouse to give up any claim to them.
To work around this negotiating a structured payout can mean you don’t have to be able to give the cash upfront right away as you liquidate assets to get the money together.
POST-DIVORCE EXPENSES
Finally, once the divorce process is completed, failing into the trap of underestimating your expenses can prove costly.
If you’re accustomed to living on two incomes, paying for things on your own could prove a shock.
Basic utilities and grocery shopping, for example, provide all these little costs you might not have had to worry about before.
Or if you have join-custody of your child, being able to pay child support is one thing.
But actually having money to spend on your kids when they visit is another thing.
To get around this, it is recommended that divorced spouses create realistic cash-flow projections and closely monitor discretionary outlays.
It’s basic things, if you’re struggling to meet your rent every month, getting rid of that pricey subscription is a serious possibility uou should condiser.
Induvial financial planning is often daunting, but especially after a lengthy divorce process, it can be vital.
It’s never easy to go through the divorce process, and emotions can get in the way[/caption]
