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Financial mistakes to avoid during divorce

No couple gets married with the intention of someday ending the marriage. Nevertheless, some say the divorce rate in America stands at a whopping 50 percent, meaning half of all marriages will end in separation. It's no secret that ending any long-term relationship can be very tough and have drastic effects on a person. Divorce can also be extremely expensive. There are a few things Arizona residents need to avoid to prevent this experience from being even more costly.

Posting about a divorce on social media should always be avoided. Boasting about new-found freedom could complicate negotiations and proceedings. Neglecting to get the necessary financial paperwork together is another common mistake. Things like balances and account numbers for all financial accounts, amounts paid for assets, receipts and other financial records should always be retained.

Regarding financial accounts, closing joint credit accounts is crucial. A spouse can still be held responsible for debt if his or her name is on the account, even if the other spouse agrees to pay the debt. Taxes can definitely be confusing, but tax consequences should never be ignored. Investments, property and retirement accounts can be taxed differently, triggering big tax bills.

Without question, court proceedings associated with divorce can be costly and time-consuming. However, collaborative divorce or mediation is a helpful way to save money. Despite traditional stereotypes, the divorce process does not have to be a battle. Meditation require spouses to be cooperative and this is becoming a more popular way to get through the separation in a more constructive manner. Arizona residents who have questions regarding any aspect divorce should always consider discussions with an experienced family law attorney.

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Reppucci & Roeder Attorneys at Law | 3101 N. Central Avenue, Suite 1470, Phoenix, AZ 85012 Phone: (480) 900-5538 Map & Directions
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