The aftermath of a divorce often means months or years of financial struggle. However, this does not have to be the case. Often those in Michigan who struggle after a settlement have made common financial mistakes during the divorce process, leaving them with an unfair share of assets and debts.
As devastating as the prospect of a divorce may seem, it is important that those involved take their time and make informed decisions about their finances. Rushing to get it over with is one of the first mistakes and can have a domino effect on the rest of the process.
Look to the future
Not all assets are the same, and even seemingly valuable assets may come with hidden costs. For example, certain investments may charge a penalty to withdraw money, and keeping the house means paying for maintenance, taxes and repairs. Since Michigan is an equitable distribution state, it is important that those facing divorce take the time to understand the true value of their assets to increase the chances of obtaining a fair division of marital property. Other financial mistakes to avoid include:
- Failing to assess one’s responsibility for the marital debt
- Not fighting for an equitable portion of retirement savings
- Thinking only short-term for child support expenses
- Neglecting to look for hidden assets
- Refusing to consider less costly alternative dispute resolution instead of litigation
One of the common mistakes many divorcing couples make is assuming they can handle the divorce without the assistance of a legal professional. Even a divorce that seems amicable and straightforward often involves some complex issues that can be difficult to tackle during a time of high emotion. Having a legal advocate can improve the chances of reaching the other side with a fair outcome.
