Going through a divorce is undoubtedly an emotional time for those involved. However, many fail to realize that divorce is much more than emotional. This process can be an incredibly intricate and complex legal and financial matter. Unfortunately, failing to make the right decisions during your divorce can impact your life for years. If you are considering filing or have been served papers by your spouse, it’s imperative to familiarize yourself with the most common financial mistakes made during divorces. The following blog explores some of the most common errors and how you can avoid them with the help of St. Louis divorce lawyers.
How Can I Avoid Common Financial Mistakes During My Divorce?
One of the most common mistakes you may make that can have a serious impact on your finances is failing to consider what life will be like when you are single. As many couples intertwine their finances, leading to one spouse handling the bills, you may not take certain expenses into consideration. It’s important to create a budget to help you prepare for life following your divorce. You should include basic necessities, like rent, utilities, and groceries, while also including things like insurance, property taxes, and even purchasing a vehicle. Similarly, you’ll need to consider the new tax implications and how they can affect your finances post-divorce.
Another common mistake you may encounter when filing for divorce is failing to update legal documents. When you and your spouse marry, it’s not uncommon to put them as the sole beneficiary of your will or life insurance policy. However, when you divorce, ensuring you update these documents is critical. Even if you have remarried, as per the terms and conditions of these documents, your ex-spouse can inherit certain assets. You should change all documents as soon as your divorce is finalized to ensure assets go to the correct beneficiaries.
Finally, filing for divorce can be incredibly emotional. As such, making rash, impulsive decisions based on sentimentality can have negative impacts on your finances. For example, you may want to retain the family home because of its sentimental value, but you may not be able to afford the property taxes with your sole income. Instead, focus on making rational and clear-minded decisions with your financial future in mind.
As you can see, there are a considerable number of financial decisions that you must consider when filing for divorce. If you are ready to move on to the next chapter of your life, working with the team at Stobie Family Law Group is in your best interest. We can help guide you through this process to help set you up for success following your divorce. Contact us today to learn more.
