If you are planning on getting a divorce in Ohio, there are certain divorce mistakes you need to avoid for an easier process and a better outcome. Divorce can be quite emotional, resulting in poor financial decisions, which is why it is so essential to understand exactly how the settlement process works.
Do you need help avoiding common divorce settlement mistakes so that you are happy with the outcome of your finances? If so, check out this article, where we will be discussing tips for divorce settlements and the common divorce mistakes people make in the state of Ohio.
Not Planning For Potential Debt
One of the more sneaky divorce settlement mistakes is not anticipating issues with debt that may come up later on after the divorce. Part of the goal of a settlement is to ensure responsibilities are divided fairly so that one spouse isn’t left with the majority of the debt that they share.
Something you should do during the settlement process is get a copy of your credit report to identify joint accounts that you may not have been aware of that could impact your credit score. You should also work to pay off any joint accounts or refinance the remaining debt to reflect the name of the spouse responsible for paying them.
Additionally, you should create a plan for your divorce settlement in case the IRS does an audit, which could result in penalties, interest, or taxes. There can also be tax consequences for settlements, which should be included in the settlement plan to minimize the expenses for both you and your spouse.
Overlooking Hidden Assets
Spouses are required to be upfront in a divorce settlement, including all of their assets that could be included. However, there are situations where one spouse may try to hide assets from the other so that they do not have to divide them or miss out on other assets that they had throughout the marriage.
Some signs that your spouse may have hidden assets include things like:
- They aren’t forthcoming with financial records.
- Valuable personal property has disappeared.
- They haven’t received expected bonuses or commissions within the expected timeline.
- You’ve been locked out of certain financial accounts.
- There have been inconsistencies in your tax returns over the past few years.
If you suspect that your spouse may be hiding assets, you need to get the help of a divorce attorney to know what to do next. If you are confident that they are hiding assets, you can also ask the judge to issue a temporary restraining order that will prohibit them from transferring, selling, or disposing of assets without your authorization.
Focusing on the Wrong Assets
If you want to get the best outcome for your divorce settlement, you need to look beyond the current market value of the assets you are fighting for. For instance, it is better to get assets that generate income rather than assets that have a significant market value so that you have more financial stability in the future. It may also be better to get liquid assets rather than assets that are harder to convert into cash.
Aside from hiring a divorce attorney, it can be highly beneficial to hire a financial advisor who can help you make wiser financial decisions.
Underestimating Your Post-Divorce Expenses
Because divorce is an emotional process, it is easy to make some of these common divorce mistakes in the heat of the moment. However, you do not want to act too quickly when it comes to creating a settlement agreement without having a thorough picture of your finances post-divorce.
For instance, you need to have a complete picture of the debt you will most likely still have to pay after the divorce. You need to look at your expenses as well to get a better understanding of what you will be responsible for when you no longer have the assistance of another income.
It is especially important to estimate your post-divorce expenses if children are involved so that you can create a more realistic and fair agreement around child custody and child support. Although many of these financial aspects of a settlement can be revisited later, it will be much more difficult and time-consuming.
Fighting For Things You Can’t Afford
One divorce mistake to avoid is turning the settlement process into a fight for certain types of assets that you may not be able to afford. For example, many couples get carried away fighting over the family home or shared vehicles without fully understanding whether or not they will be able to afford them post-divorce.
Having a realistic idea of what your budget will be after the divorce can help you evaluate what you can and can’t afford. In some instances, you and your spouse may be able to agree to liquidate more considerable assets to pay off debts instead of fighting over who gets them after the divorce.
Failing to Hire a Divorce Attorney
When you are going through a divorce in Ohio, the last thing you want to do is try to manage this on your own. Even in the most amicable divorces, you still need to have legal representation to ensure a fair outcome that will give you financial and emotional closure.
A divorce attorney in Ohio will have experience with divorce laws and can act as a mediator between you and your spouse. They can help you examine your financial situation to ensure you get a fair outcome and don’t agree to terms that are not in your best interest or in the best interest of your children. An attorney can also help with the more complicated aspects of a divorce settlement, such as making provisions for any tax implications that could arise later on.
Contact a Divorce Attorney in Ohio
Do you want to get a fair divorce outcome that provides financial stability? Richard P. Arthur, Attorney at Law, can help you navigate some of the common divorce settlement mistakes so that you can better protect your future. Richard P. Arthur has handled hundreds of divorce cases across Montgomery, Greene, Clark, and Miami counties in Ohio and can help you get a fair settlement in your divorce. Contact us today at 937-254-3738 for a consultation.