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Stop these financial mistakes of settling a divorce

On Behalf of | Mar 15, 2022 | Divorce |

Delays in the Washington divorce process are costly, and the more you disagree, the greater the expense can become. Making financial mistakes in a divorce is easy if payback is all you’re considering. There are details to money that you have to consider if you want to avoid losing your financial footing when you separate from your spouse.

Failing to budget your personal finances

One of the central mistakes of accepting a divorce settlement deals with your personal finances. Unfortunately, some people don’t have a new budget plan before filing for a divorce. The sensitivity of your personal finances can’t be overstressed. You’ve been sharing everything with your spouse up until now. Without having an outline of your expenses or income after divorce, you’ll struggle. Don’t assume that the divorce itself is the financial liberation; have a plan for your finances both during and after divorce.

Overlooking the taxes

If you want to protect your financial future, one of the most important tasks during divorce is to value assets properly. Start with a solid grasp of separate property and marital property. For a general context, anything you obtained during your marriage is shared. You can argue that certain things are yours, but state law will guide what assets and liabilities are to be split between.

Even if you negotiate a deal out of court, things can get complex because the value of something now could reach near zero after its tax obligation is paid. Don’t overlook the impact that taxes will have on the assets you walk away with.

Your divorce in Washington

Don’t make the mistake of moving too fast to end a divorce. Your financial future matters, and the time you’re allotted in your filing stands for a reason. Ending a marriage will alter your finances and set you on a new life trajectory, so make sure to consider your situation carefully.