In this piece, we’ll continue examining common pitfalls you can fall into over the course of a divorce. We’ve mentioned before that overlooking assets, failing to fight to keep the house and having a budget can go a long way in saving yourself major headaches when a marriage termination occurs. What else can you do?
Planning can make a big difference during divorce. We’ll help you stay prepared.
Again, divorce can be a messy process both financially and emotionally, but with a little planning, you can make it easier for both sides to get through it.
It’s Not About Revenge
It’s been said that revenge can cloud the mind and it is most definitely true when it comes to divorce. Making the process about vengeance rather than fairness will quickly land you in the red. A simple fact to remember as you go about your divorce is that every dollar spent on legal fees is a dollar that neither you nor your spouse will collect.
While it’s tempting to employ a lawyer that advocates aggressive tactics as a way of “getting back” at your spouse, remember that it is a situation of diminishing returns. The calmer and quicker the two of you go about the divorce, the more there will be to share when it’s all over.
Remember the Taxman
When dividing assets, always keep in mind the tax brackets involving both of you. Money stored in retirement accounts or disbursed among investments will be viewed differently by the IRS. What may seem like a fair division of assets may look very different once the taxman rolls past, so always keep in mind how much you’re really entitled to over the course of negotiations.
Stay on Top of Things
A divorce, no matter how lengthy, does not end once papers are signed and delivered. Once the dust settles, there are still small housekeeping matters that you should take care of. Among these tasks is updating your will to reflect new beneficiaries and adjusting your healthcare proxy and power of attorney.
Be sure to transfer the titles on things like vehicles and property, as well as changing passwords to formerly shared accounts. The little things may seem unimportant, but anything that can prevent confusion and conflict makes a difference.
Divorce is never an easy process. At Barrera, Sanchez & Associates, we understand how difficult it can be. We work to make sure that you receive what is fair in a respectful manner. If you would like to learn more about our services, contact us online or give us a call at 956.287.7555.