Don’t Make These Co$tly Divorce Mistakes

Every divorce has its challenges, no matter how amicable it might be – and divorces are rarely amicable. And, when both spouses have a lot at stake financially, disputes and complications can arise quickly. Any attorney will tell you that the more prepared you are going into the divorce process, the better the chances to receive a favorable settlement.

Preparation means taking the time to sit down with your divorce attorney and perform your due diligence. Most importantly, it means preventing the common pitfalls that can lead to unnecessary and unexpected costs and headaches.

Ensure you avoid making costly mistakes like the following:

Concealing or hiding assets

During your divorce, you and your spouse must give the court an inventory of all your personal and marital assets and debts as part of the property division process. The court uses this information to ensure both spouses retain the same quality of life post-divorce, dividing the marital property in a manner that’s fair and equitable, assigning alimony in much the same way. Sometimes a higher-earning spouse may attempt to hide assets from the court in an attempt to lower their net worth.

This is never a good idea. When you get caught (and you will) you will face legal and financial penalties greater than the outcome you were trying to achieve.

Not properly valuing assets

If you and your spouse run a business, or have a substantial amount of assets, strongly consider having a valuation performed. Holding family and non-family assets gets complicated, and an expert can assist with valuation of retirement assets, trusts, pensions and real estate. A business valuation attorney can help determine the value of your company during your divorce.

Forgetting about taxes

The tax ramifications of ending a marriage can affect your finances considerably, and it’s important to account for them when planning for your divorce. Because married couples receive certain tax benefits and incentives, a divorce may change your tax bracket. If you receive the family home, business, or vacation home in the divorce settlement, you must take those taxes into consideration as well. If you and your spouse decide to sell your investment property, is it subject to taxes? What if you have primary child custody? Does that affect taxes? You must go over all of these issues with a qualified attorney.

Considering all aspects of child support

The court assigns child support based on the child’s best interest and to ensure they maintain the same quality of life as when their parents were married. Especially in families with considerable wealth, you can expect your child to continue to thrive. If you will be paying child support, remember to account for things like summer camp, private schooling, extracurricular activities like horse riding, and family vacations.

The experienced attorneys at Epperson Law Group, PLLC serve clients around the state with divorce guidance and preparation. We are thorough and strategic, working to achieve your goals. Call us in Charlotte, Boone, or Weddington at 704-321-0031, or visit our contact page, and schedule your consultation.