Don’t Make These 4 Financial Mistakes During Your Divorce

Don’t Make These 4 Financial Mistakes During Your Divorce

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A divorce can take a toll on both your mental and financial wellness. When you want to keep your budget intact and survive the proceedings with cash in your bank account, you should avoid making these four financial mistakes during your divorce.

Forgoing Alimony or Spousal Support

You may be in such a hurry to dismiss your soon-to-be ex from your life that you want to sign away your rights to spousal support or alimony. However, it is important that you set aside your emotions and think rationally about your finances. You may need that spousal support to get by the next few months or even years until you adjust to single life. If you are entitled to alimony, you should pursue it in the divorce.

Failing to File Past Tax Returns

As you and your ex settle your joint finances, it is important as well that you file any past tax returns. As indicated at Marketwatch.com, you and your spouse are still on the hook for taxes on income earned during your marriage. Failing to file those returns prior to the divorce will compromise your ability to file in the future and could put any refunds at risk of seizure by the IRS.

Forgetting to Save Money

During your divorce, you may get so caught in trying to rebuild your life from scratch that you forget all of the common sense rules for protecting your financial future. Even if you are barely making ends meet as a newly single person, you still should make every effort to save a few dollars out of each paycheck. Your efforts will pay off as you watch your savings account grow.

Surrendering Your Rights to Marital Assets

Most states have communal property laws on the books, meaning that you are entitled to half of the assets you and your spouse gained during your marriage. You rightfully can lay claim to half of your joint bank account, life insurance, investments, retirement savings, and other assets. Your Salt Lake City divorce lawyer or one in your area can help you ensure that those assets are either liquidated or divided equally between you and your soon-to-be ex-spouse.

Divorces take their toll on just about every aspect of your life. When you want to come out of it with your finances intact, you should understand your rights and also learn what you should do to avoid these four common, yet unfortunate money mistakes during your divorce proceedings.

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