When going through a divorce in Arvada and Wheat Ridge, there are some obvious financial mistakes that you will want to avoid, like lying on your sworn financial statement. But, there are also some common and less obvious financial errors that you could make, that may end up costing you big time later down the road. Let’s look at some dangerous financial mistakes you will want to make sure to avoid when dealing with a divorce.
Common Financial Errors Made During a Jefferson County Divorce
1. Vengefulness – For some, getting revenge and making things as difficult as possible seems to be a goal when it comes to getting a divorce. This not only hurts your former spouse, but it financially affects you too. When you contest every aspect of a divorce, you are delaying the process, which costs more money. Every time your attorney has to negotiate for you, it costs money. If you take this approach, you will likely spend way more money than was necessary in the end.
2. Keeping the Family Home – While this may not apply to everyone, for some, fighting to stay in the family home ends up being a financial disaster. You may think that you are able to handle the mortgage payments, taxes, utilities, and any other expenses related to the home, but often it is just too much for someone to handle on their own with a different income than what they previously had with another contributing party.
3. Assessing Real Value and Costs – A big mistake that divorcing parties often make is not taking into consideration the actual value of things after costs. For example, if you sell your home, the real value is not the actual selling price, but what’s left after taxes. The same goes for cashing out a retirement fund, as there will likely be penalties and the amount you end up with may not be what you originally expected.
These are just some of the common mistakes that we see divorcing couples make that can often lead to disaster later down the line. Retaining an experienced divorce attorney, who understands the process and knows what to look for and anticipate, will help keep you from these financial headaches in the future.