Money is something that all adults worry about during a divorce. The reduced household income, being required to pay various types of support, and other concerns all impact a person’s divorce settlement planning. However, poor financial planning is something that plagues many adults after a divorce. Recognizing financial mistakes that could ruin your post-divorce life prior to signing a settlement agreement can save you from making an expensive error that costs both you and your children dearly.
Placing Children Over Financial Security
When a divorce involves a custody dispute, parents will often do anything to obtain primary physical custody of their children. In some cases, this includes agreeing to a financial settlement that is one-sided in return for getting the custody agreement they desire. After celebrating receiving custody of children, a parent who has accepted an unfavorable financial settlement may realize that he or she cannot afford the mortgage, utilities, or other vital necessities. Sacrificing financial security to receive custody may quickly do your children and yourself a major disservice if you can no longer pay for necessities.
Fixating on Keeping the Home
It is normal for a person to feel attached to the home that he or she has lived in for years, especially if a family was raised in that home. However, fixating on keeping the family home during the divorce can turn into a disaster after the marriage is dissolved. One adult may not be able to afford the home without the income of the other spouse. Even if maintenance or child support payments are court-ordered, it is dangerous to rely on them. It is not unusual for former spouses to refuse to pay court ordered support, and a person relying on those payments to keep a family home could end up fighting foreclosure.
Not Asking Questions
Divorce is a complicated and time-consuming process, especially when the divorce is being contested because of property or children. There are numerous financial documents that must be reviewed prior to coming to a final agreement. A person who is tired, feels pressured, or is embarrassed by a lack of knowledge may be tempted to sign a settlement agreement without understanding what is being signed. Hoping documents say what they are supposed to say, relying on your attorney to do all of the reading for you, and not asking for explanations can lead to you agreeing to something seriously detrimental to you and your family.
Contact an Attorney
The best way to protect yourself from a financial disaster is by contacting a qualified divorce attorney prior to coming to any agreement with your spouse. An attorney is able to carefully review all documents, answer your questions, and recommend additional financial resources to help with the divorce planning process. The attorneys at Vayman & Teitelbaum will work with you to create an agreement that you are comfortable with, and they will negotiate aggressively on your behalf to make sure you are satisfied. Contact one of our four conveniently-located Atlanta metro area offices to schedule a consultation so that we can discuss your needs.