6 Financial Mistakes to Avoid During Divorce

6 Financial Mistakes to Avoid During Divorce from North Carolina Lifestyle Adventures of Frugal Mom

Let’s face it, only a few life experiences can cause as much confusion and agony as a divorce. In the heat of the moment, it’s easy to make costly financial decisions whose ramifications can last a lifetime.

Learn the top six most common divorce mistakes spouses make and expert help on how to avoid them.

Hesitating to hire a lawyer

If it has reached a point where divorce seems inevitable, the first thing you need to do is to consult an expert family lawyer that is in no way affiliated to your spouse. A good lawyer can assess the nature of your situation and advice on the appropriate actions to take going forward. For example, they can recommend that you take the less costly alternative dispute resolution route or another out-of-court arrangement.

Remember, you don’t need to go for the best-in-class lawyers and end up running out of money midway the court process due to excessive legal representation fees. Instead, look for an affordable lawyer that specializes in divorce matters and is also respected by other lawyers locally.

Moving out of your jointly-owned house before the divorce process commences

While moving out of a house to keep a distance from your estranged spouse may look like a wise decision, it can result in numerous terrible legal consequences. For starters, the court may order you to continue staying away until the presiding judge makes a final ruling on the property – this could take quite a long time to come to a closure.

On the other hand, the judge may assume that you’re the wealthier spouse if you decide to move out of your home voluntarily. This could result in the court refusing to give you alimony or even worse, ordering you to pay the same to your possibly more financially stable spouse.

However, there’s an exception to this rule. Don’t hesitate to leave your home if your spouse is violent or dangerous to live with. In such a case, move out to a safe location immediately.

Whatever the decision you make, it’s recommended to seek an attorney’s counsel first.

Failing to secure spousal child support payments with insurance

When it comes to child support and alimony, your ability to collect payments depends on your spouse’s ability to pay. So, what happens when they die or become disabled? This income disappears.

To avoid this kind of situation, request that your spouse obtains a disability and/or life insurance policy and have them designate your children as the beneficiaries. An excellent place to start would be this life insurance with no exam by Simply Insurance.

To be sure that your spouse will keep their word, inform the court about this arrangement and have it compel them to make appropriate and prompt payments.

Admitting to wrongful behavior

While confession is regarded to be therapeutic for the soul, it can be damaging in a courtroom. This is why you need to avoid confiding anything to your spouse or their attorney before consulting your legal team. Some of the wrongdoings you should never admit include abandoning your family, inflicting physical or emotional abuse on your spouse or children, and adultery among others.

Even when you suspect that you’ve engaged in any form of misconduct, talk to your lawyer first and also try to limit direct communication with your spouse. You don’t want to negatively affect the financial aspect of your divorce due to a careless slip of the tongue or admitting improprieties when you should have kept a low profile.

Refusing spouse’s access to relevant information

In the event your spouse serves you or your legal team with discovery, you’re required to cooperate unless your lawyer advises against it. Failure to comply can result in your spouse asking the court to compel you to produce certain documents or appear for a disposition.

If this happens, you’re likely to earn the court’s disdain or attract financial punishment down the road if the judge thinks you’re acting unreasonably or trying to frustrate your spouse’s quest for justice.

Failing to embrace the inevitable change in your lifestyle

Once you’ve made up your mind on pursuing a divorce, it’s important to accept that your financial standing will inevitably change. As such, don’t try to resist the new circumstances and instead embrace them. Remember this is not the time to make any significant financial decision – give yourself some time to heal and get over the ordeal.

If you’re unemployed, this is an appropriate opportunity to look for a new job and if already working, find ways to grow your income and advance your career. The extra income will go a long way in helping you get back on your feet and possibly maintain your previous standard of living. 

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