Couples who are going through a divorce in Pennsylvania may have a better outcome if they learn from other peoples’ mistakes. One error that many divorcing people make is choosing to take the matter to court because they think it is the only option available. In fact, divorcing spouses may instead opt to try and settle property division and child custody issues through negotiation, mediation or collaborative law.
Another mistake that is often made is spending too much energy fighting over relatively minor issues while forgetting to look at the big picture. For example, parents who are arguing that they should receive more child support money each month may want to consider their child’s age. If the child is 2 years old, focusing efforts on this type of issue may be worth the extra time and expense. If the child is in high school, it may be better for the parent to leave this matter alone.
A lot of people go into the divorce process not realizing how much time it will take. Rather than starting out on the offensive, a spouse should take the time to calmly assess all of the issues at hand and get prepared. A divorcing spouse who does not have all of the couple’s financial information ready will be at a disadvantage in court proceedings and negotiations.
Common Financial Mistakes During Divorce
Pennsylvania couples in the midst of ending their marriage may not always be making their financial futures a top priority. However, the emotions common in many divorces can end up leading to financial mistakes that have long-lasting consequences for one or both parties involved. A lack of understanding of the household finances, a lack of legal or financial advice and the tendency to make emotional agreements without formal documentation can all complicate the divorce process.
It is common for one party in a marriage to manage the household finances, leaving the other in the dark when it comes to important information such as general household assets, 401(k) plans, and IRAs. A forensic accountant may provide guidance in such cases, combing through tax information and other documents to provide a clear picture of the assets available for division.
Spouses who do not have a good financial adviser or legal team may find the divorce process more complicated than it has to be. High-asset divorces may benefit from a three- or four-person team that can devote significant time to the case. While couples need separate legal teams, they can often use the same financial adviser throughout the divorce without any fear of a conflict of interest. Couples may also make the mistake of agreeing to things in an emotional moment without putting the agreement in writing. It is difficult to prove what was agreed to at a later date if the agreement is not made a part of the divorce decree.
Those who are going through a divorce may often benefit from consultation with a family law attorney. An attorney may be able to help navigate such complicating factors as child support and custody. Legal counsel is often especially helpful when dividing real estate holdings, business assets and complex financial assets that may be part of the divorce.
