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Avoid costly mistakes in your property division settlement

It is all too easy to focus on the emotional aspects of a divorce and forget about some of the more logical points. This can be financially devastating. Even if you don't immediately notice the impact, you might realize it a year or more down the road.

For anyone who is going through a divorce, making sure that you protect your financial interests is imperative. When you are working on the property division settlement, avoid making these critical mistakes so that you can start your single life off on the best footing possible.

Emotional attachment

You can't let your emotions get in the way of making a sound decision. When it comes to some assets, such as the marital home, there might be a strong emotional connection. Instead of thinking about this, you should sit down and determine how keeping the asset might affect you in the future.

Some assets, including real estate, have ongoing costs associated with them. Think about things like insurance, taxes, upkeep, repairs and similar factors when you are trying to determine what is worth keeping.

As you think about these costs, remember that you are going to be relying solely on your own income to pay the bills. Even if you do receive child support or alimony, there is always a chance that something will happen to your ex and those payments would stop. Being able to plan your budget for your income only can help you become more financially stable.

Retirement accounts

Your retirement accounts need to be addressed in the settlement. Make sure that you get a Qualified Domestic Relations Order for these so that they can be divided up as intended. You must also ensure that they are valuated properly because the current worth of the account might not actually reflect the value that you need to consider for property division purposes.

Discounting debts

The property division settlement isn't only about dividing assets. You and your ex will also have to divide the marital debts. This can make a big dent in what you walk away with if your marriage was debt laden. You should remember that your credit score can be impacted if your ex is supposed to pay an account but doesn't because creditors don't have to abide by the terms of the divorce.

There are some cases in which the debts can be used to balance out a situation where the assets are divided equitably or equally. Just make sure that you don't get stuck with the majority of the debts and minority of the assets.

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