THE REPRESENTATION YOU NEED IN ORDER TO PROTECT YOUR FAMILY
The Most Common Financial Mistakes People Make During Divorce
Posted in Divorce on June 7, 2021
It can be difficult to protect yourself emotionally and financially during a complicated divorce case in Colorado. However, there are steps you can take to improve the outcome of your divorce and make the process as stress-free as possible. Avoiding several common financial mistakes can allow you to prevent issues that could significantly hurt your case. A divorce lawyer in Fort Collins can help you protect your financial security during the legal process.
Living on Your Old Budget
It can be difficult to adapt to a new, single budget after your separation or divorce. You may be used to a certain standard of living that you enjoyed during your marriage. It is important for your future financial stability, however, to create a new budget with your new income.
Write down all of your expenses and create a monthly budget with only your income. Don’t forget expenses such as credit card and debt payments, rent if you have moved out of the family home, and other expenses that your spouse used to share with you. Creating a budget can allow you to maintain your current quality of life and avoid going into significant debt during your divorce.
Your divorce paperwork will ask you to create a comprehensive list of all of your assets, property and sources of income. It is important not to omit any assets, as this could get you into legal trouble. You are legally obligated to disclose all of your assets, including properties, cars, collectibles, jewelry, family heirlooms, furniture and more. Failing to do so could be seen as an attempt to hide assets.
It is also important not to forget any assets when you are creating a property division settlement with your ex-spouse. This is something an attorney can help you with, as a lack of legal knowledge is a common reason why many people fail to negotiate for assets that they legally have a right to. A lawyer can explain Colorado’s equitable property division law to make sure your settlement distributes your assets fairly.
Being Emotionally Attached to Your Home
It is normal to have an emotional attachment to your family home, especially if children are involved. If keeping your home is not financially in your best interests, however, it is important to move on. You may not be able to afford the mortgage and upkeep of the home on your own, or you may have to give up too many other assets to do so. Keep this in mind if your attorney recommends selling the family home. Do not let your emotional attachment get in the way of what is best for you and your family financially.
Failing to See the Big Picture
Many people get so caught up in the details of property division during a divorce case that they forget to look at the big picture or their future financial stability. You may forget to take important issues such as taxes, inflation, losses and gains, and your long-term financial needs into account if you are focused only on dividing your marital assets piece by piece. A lawyer can help understand all of the financial aspects of your divorce.
A divorce lawyer in Colorado will have the knowledge and experience to fully protect you financially during your divorce case. Your lawyer will understand the property division laws in your state and how to successfully navigate them for the best possible results. Your lawyer can also help you and your spouse come to a settlement agreement, allowing you to stay in control of property division.
Finally, a lawyer can help you avoid common financial mistakes that many people make during divorce cases in Colorado. A lawyer can save you from jeopardizing your financial future. Contact an attorney in Fort Collins today for more information.