Getting divorced can be a stressful and emotional process. Throughout your divorce, you might not be thinking clearly about your finances. This could lead to many mistakes and rash decisions that you are going to regret later on. But by finding out about them beforehand, you’ll be much more likely not to fall into their trap.
Here are the financial mistakes you’ll want to avoid during your Ohio divorce.
Now is the time to be creating a budget and not spend so much money. Even though it may be tempting to pull out the credit card and go shopping during this tumultuous time, you could be putting yourself in a tough position. Instead, download an app like Mint, carefully track your spending, and figure out what your needs are vs. your wants. This will be especially helpful after you get divorced, and you don’t have a second income to rely on anymore.
Thinking You Need Every Asset
Though you may be entitled to many assets, you might not want to pursue all of them. For instance, if you get the family home, it could end up being a huge financial burden. The mortgage could be too expensive. It might be a lot of money to maintain it and make repairs. Think about what your life is going to look like post-divorce and whether or not you can afford to keep the assets you’ll be given. Otherwise, it could make sense to just sell them off and downsize.
Not Paying Your Debt
It’s important for you and your spouse to pay down your debt prior to getting divorced. Even if the settlement says that your spouse is responsible for their share of your debt, they may not pay it. Since it’s also under your name, your credit score could end up plummeting. It’s just not worth it to take that risk if it can be avoided.
Not Considering Your Job Situation
You should think about your job situation and how you’re going to bring in income following your divorce. For example, you may have to go back to school so that you can get a better job in the long run. But how much is school going to cost? How much will you make in your new job? Will you be able to pay off your student loans? Is there a way you can go to community college or get scholarships to decrease your costs?
Also, what sources of income can you rely on? Don’t factor in investments since they could go either way. You never know how the market is going to perform. Don’t rely on spousal support or child support, either. Figuring out your income is going to prepare you for your life post-divorce.
Not Hiring a Divorce Attorney
It may seem like a good idea to work on your divorce yourself so that you won’t have to hire a lawyer. However, this could actually end up losing you a lot of money in the long run. A divorce attorney is going to protect your interests and advocate for you to get what you deserve. Make sure you find one with experience and excellent results to back up their work.
Get in Touch With Richard P. Arthur
Richard P. Arthur, Attorney at Law, can assist you with your divorce in Ohio. You can call 937-254-3738 for a consultation. He has more than three decades of experience helping clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.