Divorce is never fun, but it does not have to be full of financial mistakes and nasty arguments. This might be a difficult chapter in your life, but you can take some steps to avoid it becoming a tragedy. If you keep your cool and make smart decisions amid all the complications and frustrations, you can come out the other side with your finances and emotions intact.
However, if you go through your divorce without the right guidance, you could easily make costly errors. Keep reading for the biggest mistakes you should avoid during your high-asset divorce.
1. Getting revenge
You might have a lot of anger built up towards your soon-to-be ex. If you find it difficult to be civil around your spouse, you will find it difficult to sort out your differences and come to any sort of agreement. Avoid the urge to actively engage in vengeful behavior. This will only prolong the process and cost you more than necessary.
2. Ignoring tax implications
Getting divorced will change your tax status. Not only will you be filing as "Single," but there may be other consequences, too. Child support and alimony may affect your taxes. Property division will likely change your taxes too, particularly the division of valuable real estate.
3. Doing it yourself
It may seem tempting to try to go through this process without an attorney or financial planner. While you might want to save money upfront, it is easy to make mistakes in a DIY divorce that will end up costing you later. According to a CNN report, you should especially avoid this divorce mistake when there are valuable assets on the line.
It can be easy to make these mistakes, whether you are driven by emotions or do not know about the details of family law issues. If you avoid trying to do it all yourself and consider tax consequences, you can make better decisions.