What financial mistakes should I avoid when getting divorced?
Phoenix family law attorneys help people navigate some of the most turbulent, emotional times of their life as once happy couples and/or families go from “I do” to “I’m done”.
If you are getting divorced in Arizona, there are many factors to consider when separating one household into two.
For all couples,
In general, marital property is property and assets earned or acquired by either spouse during the marriage. Separate property, in general, is acquired before the marriage and belongs to the spouse who acquired it. However, inheritances and certain gifts received during the marriage may be considered separate property. Also, actions taken by a spouse with respect to what was their separate property may be deemed to convert it to marital property.
If a couple can’t agree on dividing their assets, the court will attempt to do so in as close to a 50-50 split as possible.
There are many emotions that factor into many divorces, including fear and anger– and those emotions can drive certain spouses to make financial mistakes. That’s why it’s important to seek counsel from a skilled divorce attorney prior to taking actions that can have financially-devastating impacts later.
Some of the mistakes people make during and/or after divorcing include:
- “retail therapy”- spending money on new cars, homes, clothes, vacations and other things that are beyond the budget of a single person in your new situation
- cashing in on investments or retirement plans that may have serious tax consequences and/or IRS penalties
- not being mindful of the new tax law regarding alimony impacting divorces finalized after December 31, 2018
- quitting a job to avoid paying alimony
- fighting to keep the house when you can’t afford it
A skilled divorce attorney will help you through all the difficulties involved in getting divorced and starting anew, including the financial adjustments they come with it.
If you need assistance with filing for a
From our office in Phoenix, we represent families in transition throughout Arizona in all aspects of family law.