Monday, November 14, 2016, AM | Leave Comment
As described by the author Mary Kay Blakely “Divorce is the psychological equivalent of a coronary bypass”, divorce is not only painful but also complicated which breeds the scope for mistakes.
It is also the time you need to make the correct decision and establish a strong financial foundation and start your next chapter of life.
In this article, I am going to discuss 6 of the most common financial mistakes that women make in divorce and how they can protect their financial future.
Talking to their spouse before filing for divorce
It is not a wise decision to inform your husband before filing for divorce, if your husband becomes aware that you are filing for divorce, there is a possibility that he will hide all the financial news such as bonuses or improvements in your investments, etc.
Therefore, you need to be quite for some time which will allow you to gather all the financial news and documents from the bank.
Deciding financial issues one at a time
In many cases, women ignore some important financial terms like income tax, taxes related to investment and assets, and capital gains tax, etc.
You need to get the absolute picture of all the relevant financial issues when you are filing for divorce.
Failing to finalise the arrangements
It is crucial to have a signed consent letter from a solicitor when you are settling with your assets. Without having any signed consent letter, your husband can make further demands of assets or income.
Always make sure that you protect yourself from any nasty surprises from your husband and remember to make a new will which will let your assets to go to your chosen beneficiaries after you die.
Settling too soon and for too little money
So many cases are found where women are settling too soon for very less amount than they are entitled to. Why take little then you are entitled to??
Most of the women regret after settling with less amount. There are also other women who just want to get it all over with as soon as possible.
This is the biggest mistake many women do; they react emotionally. In many cases, the problem arises with the legal child custody and women just give in because they become exhausted emotionally, and also they don’t’ want others talking or gossip about them.
But after that, they also regret about giving in too early.
There are also others who file divorce for taking revenge from their husband. It is not wise to waste your valuable money and time expecting to get revenge.
The best way to get a good resolution for both parties is to remain calm and hire a solicitor who will tell you what the court is likely to do in this situation.
Not able to address unsecured debts
For the benefit of both husband and wife, it is important to disclose the details of your unsecured debts. Loan givers or creditors have nothing to do with your divorce; if your ex-husband fails to clear your debts as directed in the settlement agreement, then creditors may come after you as it is your debt.
Therefore, the couple heading for divorce need to separate all the debts and take responsibility for their debts solely.