Sure, there are obvious things that people know they should avoid doing during a divorce. But not all major divorce mistakes are evident to the average person, especially when they involve finances.
As a result of these not-so-obvious divorce traps, many Illinois residents are left worse-off financially than they need to be following a split. To avoid being one of these people, consider the following tips from a recent article appearing in “Time” magazine.
What not to do during a divorce:
Trade financial assets for child custody rights. Child custody decisions are based on the best interests of the child, not which parent is willing to give up more for additional access to their child.
Fail to understand your post-divorce financial needs. If you fail to ask for alimony during the divorce, you will lose the opportunity to get the support you might need.
Treat financial issues and assets as isolated instead of cohesive. It’s important to understand your entire financial picture clearly, not just individual parts of it.
Protect your rights to financial entitlements through insurance. If you receive alimony or child support and your ex were to die unexpectedly, do you have insurance in place so that the payments would continue?
Forget to assign unsecured debt. Even if your ex says he or she will handle credit card debt or medical bills, you can still be on the hook for marital debt after your divorce.
Ignore post-divorce planning. Issues such as finding new health insurance, transferring retirement funds and changing ownership of accounts all need to be addressed before it’s too late.
An experienced family law attorney can help you to avoid divorce pitfalls like these that can leave your finances in ruins.
Source: Time, “The 7 Biggest Money Mistakes That Divorcing Women Make,” Lili A. Vasileff, July 9, 2014