When couples decide to divorce, partners often just want the emotionally draining process to be over, never taking the time to step back and take an in-depth look at finances. Most often, couples tackle monthly bills together, but with this change comes a new financial process in life. Preparation is vital to a successful Los Angeles divorce.
Not Preparing for the In-Between Time
Once a couple decides to divorce, there is a time between the date of separation and the final divorce that is filled with uncertainty. One of those uncertainties should never be money. Putting money aside for this time is critical when assets have not been divided, and transitions require a person to spend more money, like renting an apartment. This can drain an account faster than anyone would like to think.
There is no need to open an account secretly, but there is a need to create a new space where funds can be contributed to cover the additional costs of the divorce process. Adding money to an account during this time will allow for a cushion, relieving some of the stress and allowing for a less overwhelming transition.
Being Unfamiliar With the Finances
Marital property is divided equally in California divorces and divides debt the same way unless specified differently. Very often, one partner in a marriage will take the role of managing finances. This household management style may work until the couple decides to pursue a divorce and one partner is staring down an unfamiliar financial landscape.
There may be debts one partner was unaware of, or there could be savings accounts, retirement funds, or additional assets that go undivided, whether unintentionally or not. Sadly, many partners are surprised at the time of a divorce to learn that the marital finances are shaky, there is little to build on, and sorting out a financial plan feels like uncharted territory in an already emotionally depleting time.
Insisting on Staying in the Home
Most couples combine their funds to afford the home they live in. Losing a home and starting over in a new place, in addition to a marriage ending, can feel traumatic. Individuals long to keep this emotionally connected space, but that can be costly in the long run.
It may not be financially possible to afford a home’s mortgage in California and all the costs that accompany its ownership on one income. It can be simple to make costly mistakes when an individual is forced to sell a home when the expense and maintenance become unmanageable, with the acceptance of offers that are far too low simply to get out from under the weight. Making these unsound financial decisions leaves little to work with in the search for another more affordable place to live.
Not Being Familiar With Spending Habits
Daily spending habits often go unnoticed and become a surprise, even to the spender, with the financial shifts a divorce creates. It will become imperative to assess how much money is spent each month, from lunch dates to a quick cup of coffee. Now, there will be living expenses to account for, too.
Sound Guidance in a Los Angeles Divorce
One of an individual’s most costly mistakes in divorce is not seeking sound guidance through supportive legal representation. More costly than attorney fees, not taking a firm and active stand to secure your future during a divorce can be financially crippling. Our Los Angeles divorce lawyers understand the complexities of divorce and want to ensure you are ready for what is ahead by providing a free consultation and diving into the hard work for you.