Common Financial Mistakes
What Financial Mistakes Can I Make?
By choosing to involve Pacific Divorce Management in your divorce these financially devastating errors can be avoided as well as any unexpected financial surprises that may arise in the future.
- Retaining an attorney before considering all options.
- Failing to consider Alternative Dispute Resolution such as Collaborative Divorce and Mediation.
- Not understanding that if you both choose, your settlement can be different than what a judge would order.
- Not understanding the roles of the different professionals and resources available in divorce today.
- Making emotional decisions rather than thinking strategically.
- Deciding financial issues piecemeal instead of understanding the big picture.
- Agreeing to a settlement without understanding the financial impact.
- Failing to understand the difference between marital and separate property.
- Not understanding that in property division equal is not always equitable.
- Keeping a residence you will not be able to afford.
- Failing to include the full value of a pension among marital assets.
- Disregarding the impact of taxes on assets in a divorce settlement
- Failing to include future transaction costs when evaluating settlements.
- Not understanding the financial consequences of spousal support (alimony), child support and family support.
- Failure to insure support payments.
- Not producing detailed and accurate current and future budgets.
- Disregarding the long term impact of inflation, investment returns and taxes.
- Failing to use rule 72 (t) – hardship clause to assist with cash flow needs.
- Failure to develop a post-divorce financial plan.
- Forgetting to amend your estate plan post divorce.