Four Financial Mistakes To Avoid During And After Your Divorce
Getting divorced can send every part of your life into a tailspin. It can be easy to feel like things are spiraling out of control as you work with your lawyer, your spouse, and the court to dismantle the life you built with your partner. Amid all the changes, though, it is important that you keep yourself focused on your future. Your life is not over when your marriage is over, and making prudent financial choices before your divorce is finalized can help you make an easier transition to life after marriage.
Avoid making these four financial mistakes that hurt many divorcing and divorced individuals.
Not Closing your Joint Credit Cards
As long as you and your former partner are both authorized to use a credit card, you can both do exactly that – use it and accrue debt. In your divorce, your joint debt is divided alongside your marital assets. A vindictive spouse can rack up a high level of debt before this part of the divorce process as a way to “hurt” his or her partner. When an individual is simply an authorized user on a credit card, the credit card’s owner – often, his or her spouse – is 100 percent liable for any purchases made with it.
Failing to Value and Fully Understand your Assets
It is not uncommon for one partner to be the one who handles a couple’s financial portfolio. When this is the case, the other partner can make crippling financial mistakes from not fully understanding the value of his or her marital assets, the projected values of these assets and when applicable, their tax obligations.
Living the Same Lifestyle you Lived Before the Divorce
For most people, getting divorced means switching from a double-income household to a single-income one. This generally means you will have to scale down your lifestyle. When you continue to make the same purchases you made during your marriage or opt to treat yourself to luxuries to celebrate your divorce, you can quickly put yourself into an uncomfortable level of personal debt.
Protect yourself from this kind of debt by making a personal budget and prioritizing it. When you want to celebrate your divorce, celebrate with free or low-cost treats that fit into your budget, like a day out with friends or an at-home spa treatment.
Not being Proactive About your Financial Future
The biggest mistake you can make is not planning for your financial future. Before your divorce is finalized, start working with a financial planner to determine realistic financial goals for you and ways you can reach them. This means having a budget, estate planning, and making investments that make sense for your lifestyle.
Work with an Experienced Tampa Divorce Lawyer
One of the most effective ways to avoid making financial mistakes with your divorce is to work with an experienced Tampa divorce lawyer. Your lawyer’s job is to protect you from facing financial hardship after your divorce and from being taken advantage of during the divorce process. Contact our team at Bubley & Bubley, P.A. today to set up your initial legal consultation in our office.