Costly mistakes to avoid in a divorce

On Behalf of | Jan 28, 2019 | Divorce

Knowing what financial mistakes are common during a divorce may help some estranged Florida couples avoid making them. Talking about personal issues on social media can be one error. After a man discussed his expensive vacation and closing a successful deal, his claim that he could not afford a proposed divorce settlement was less credible.

Some people might fail to get the paperwork they need, and not all of it is only useful during the divorce. For example, for marriages that last at least 10 years, a person might be able to draw Social Security benefits on a former spouse’s earnings record. People might also not realize that they need to cancel joint accounts. If there is debt and a person’s name is associated with the debt, creditors may pursue that person even if the divorce agreement requires the other party to pay it off.

People should also be aware of tax implications. The divorce agreement may be affected by the fact that alimony is no longer tax deductible or payable. Certain assets may be taxed on distribution, such as regular IRAs, and this can affect their value. People may also assume that divorce means litigation. However, it may be possible to reach an agreement on both property division and child custody through negotiation or mediation.

An attorney might also help guide a divorcing parent away from potential mistakes. For example, if the couple does have to go to court about child custody, a parent should still show a willingness to cooperate with the other parent. This may be difficult, but judges often look for this when they are making decisions about custody and visitation. An exception would be if the parent is concerned about the child’s safety and wants the other parent to have only supervised access.