Getting a divorce is a challenging life experience, especially since it’s typically coupled with important financial decisions. Many spouses are able to save money and avoid the stress of a trial by reaching a settlement agreement outside court. However, as people attempt to get through these negotiations quickly, they often make errors along the way. These mistakes can have long-term financial consequences. To ensure you get the most favorable outcome possible, avoid the following common mistakes.

Financial Errors to Avoid in Your Divorce Settlement

1. Making Decisions Based on Emotion

You’re likely to experience many strong emotions as you navigate the divorce process. This can make it hard to stay focused on your goals. Enter negotiations with an open mind while also maintaining a clear idea of the results you want. This will better equip you to make rational decisions. Emotional disagreements will only delay the proceedings, and demanding to keep assets you can’t afford, such as the house, can put you in a major financial bind.

2. Not Knowing the True Financial Picture

One of the first steps you should take after deciding to end your marriage is to gather all your financial records, including bank statements, credit card bills, tax returns, life insurance policies, mortgage paperwork, investment accounts, and retirement plans. Before you can determine if a settlement is fair, you need to know the value of all your marital assets and debts. Having this information will prevent your spouse from misleading you about your financial situation to end up with a better settlement.

3. Failing to Consider Taxes 

Taxes should be a top consideration in divorce settlements. If you have minor children or a mortgage, you’ll need to decide how they’ll be claimed for tax deduction purposes. Investment and retirement accounts can also have tax consequences, and you may find yourself in an inopportune position if you ignore these issues until tax season. 

When facing a divorce, it’s important to partner with a lawyer who will prioritize your best interests and ensure you understand all your options. This is why people throughout Westchester County, NY, have turned to Monteleon Law Group for representation. They’ll give your case the personalized attention it deserves. Call (914) 840-2529 to schedule a consultation, or visit them online to learn more about the legal services they provide.