Financial Pitfalls during Divorce
Last week, we let you in on a little secret: there are hidden financial benefits to divorce. Unfortunately, there are drawbacks, as well. What are the most common financial pitfalls you may face during your divorce, and how can you avoid them?
The first financial pitfalls of divorce begin as soon as you hire an attorney. Most divorce lawyers require you to pay a retainer fee, which can costs thousands of dollars. The initial cost of a divorce should not dissuade you from filing.
There are a few different ways you can prepare for the financial burden of a retainer fee. If you know a divorce is imminent, but you are not ready to file, you can save money to pay your retainer. Some litigants borrow money from family members, while others choose to finance their divorce with Flexxbuy.
The discovery phase of divorce can drain your bank account, unless you get proactive early. Gathering financial documents now, will prevent your attorney from scrambling to send subpoenas to institutions and companies during the middle of your case.
Failing to comply with your ex’s discovery demands will lead to additional court appearances. These court appearances, along with extensive motion practice, are major financial pitfalls during divorce. Save yourself time, and money, and use our free Financial Checklist to start keeping track of your documents.
While there is a chance your divorce may benefit your taxes, you need to be aware of any financial pitfalls when you file. Your filing status, exemptions, and deductions will change. You are not allowed to deduct child support payments on your taxes, but you can do so with alimony payments.
Understanding exactly how your divorce will affect your taxes will help you avoid the confusing financial pitfall. Discuss your options with your attorney prior to settling, and always have a certified professional file your taxes on your behalf.
Letting your emotions get the best of you is one of the most common financial pitfalls of divorce. You can do serious damage to your case when you let anger, resentment, and hurt cloud your judgment.
Divorce can be emotionally traumatic, but it is best to treat your case like a business process. Be pragmatic, listen to your attorney’s advice, and check your emotions at the door. Never fight with your ex out of revenge, and keep the big picture in mind throughout your case. The sooner you learn to stop being emotional, the sooner your divorce can be finalized.
Regardless of the steps you take, you will most likely experience one of the many financial pitfalls to divorce. You can help minimize the impact of your divorce by hiring an experienced family law attorney.
At Brian D. Perskin & Associates P.C., we understand that each divorce is unique. This is why we create personalized representation plans for every client. Your divorce is one of the hardest things you will ever go through, but the right attorney can make it a little easier.
For more information on divorce and family law in New York City, contact a member of our team at 718-875-7584. Or, visit us on vCita to schedule a free, no obligation consultation today!