5 divorce mistakes that could lead to an unfavorable outcome

| Feb 26, 2020 | Firm News

No matter the stage of your divorce, you’d like to outcome to be favorable. Whether this includes your financial well-being, proper housing, maintaining your assets, child custody or another divorce matter, negligent actions will only hurt your case.

These divorce mistakes include boasting or demonizing on social media, lacking the correct documents, ignoring tax repercussions, not closing joint credit accounts and automatically going to court to litigate your divorce.

Social media blunders

Let’s say you just closed a big financial deal and now, you’re swimming in new cash. That’s a great accomplishment, but if you have maintained that you can’t afford a specific divorce settlement or agreement but then boast about your newfound glory and money on social media, the consequences will likely hurt your standing in the eyes of the court or mediator.

Lack of correct documents

Lacking the necessary documents in any legal situation is never beneficial. Divorce is no different. These documents will assist you now and the positives and adversities of life after divorce.

Ignoring tax repercussions

When dividing assets and property during a divorce and paying or receiving alimony, tax consequences may arise if you don’t pay close attention. Because you’ll be divining assets, the assets you keep will likely shrink, and in some cases, grow exponentially. Being informed on the tax laws affecting your new wealth is vital to financial stability now and in the future.

Not closing joint credit accounts

Yes, you are divorced, but the credit card companies don’t care and legally don’t have to follow the rules of divorce agreements. Thus, if you fail to do this and your spouse has racked up significant debt, you and your spouse will continue to be harassed by debt collectors until you pay off the debt. The wise move is to close all joint accounts, no matter the category, and transfer any debts to single-user accounts.

Thinking litigation is the only method available to resolve a divorce

  1. Litigation is not the only option. Mediation and collaborative divorce are also valuable methods to consider depending on your situation.
  2. Litigation is very costly compared to the other options. According to NerdWallet, court litigated divorces cost the average coupe over $15,000 in 2015. Couples dealing with custody issues cost couples over $19,000 on average.

In the long run, divorce can be welcoming and beneficial. If you’ve hurt your case, things could become a little sticky. No matter the situation, the guidance of a family law attorney can come in handy.