Divorce mistakes that can be costly

On Behalf of | Apr 11, 2019 | Divorce

When a Houston couple gets married, they often believe their marriage will last forever. But unfortunately, some marriages run into problems, and a divorce becomes imminent. If a couple is headed towards a divorce, there are certain things they should keep in mind in order to keep the divorce from unexpectedly costing them more than they expected.

When a couple is going through a divorce, there are certain mistakes they may make that can end up costing them. One mistake that many have made is posting too much information on social media. When a couple is negotiating a divorce settlement and one partner is posting about a vacation they just took, that could result in unexpected financial consequences.

Another mistake a person can make is not having all the important paperwork. These include financial account numbers, social security statements showing a spouse’s earnings record, amount that was paid for major assets and receipt documenting home improvements. These documents are important in helping with a divorce settlement and planning for retirement and tax planning.

Additionally, a person needs to be aware of the tax consequences that can be present in a divorce settlement. For example, a Roth IRA is not taxed in retirement where a traditional IRA is. Spousal support is also no longer deductible, which can make it trickier to negotiate. Joint credit accounts should also be closed immediately in order to avoid any kind of situation where one spouse is liable for another person’s spending.

There are many financial complications that can arise during a divorce. A legal professional who is skilled in divorce can help a person negotiate a settlement that makes sense for them both now and into the future. Although many Houston couples will go through a divorce, it doesn’t have to mean financial ruin. Being smart about financial matters can help a person start a new life after the divorce is finalized.

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