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Avoiding these mistakes in a divorce

Apr 20, 2020 | Divorce, Property Division

In West Virginia, spouses may find themselves in an unpleasant financial reality after a divorce. In some cases, this is directly caused by mistakes that one or both spouses made during the course of their divorce. Making smart personal finance decisions during a divorce can put each spouse in a better position after the agreement is finalized.

Some spouses may insist on keeping the marital home whether it is for comfort or sentimental reasons. Sometimes, they are able to accommodate this because of their finances. However, the mistake is stretching too much to keep the house. Some people find that they can retain possession of the home but have little money for anything else. This is what is known as being “house poor,” and it leads to perilous finances.

Another common error is the failure to anticipate that taxes may be due. For example, there could be capital tax obligations because of sales of property acquired during the marriage. Some spouses only end up realizing that they have to pay taxes on these assets until the bill comes due. Finally, some spouses may not budget properly for their new life situation and end up realizing after it is too late that they simply do not have enough money to support themselves.

Many people do not know these things when they are going through a divorce. They may not take the time to consider these issues because they are adjusting to their new reality and are otherwise occupied. A divorce attorney may help keep their client focused on personal finance issues and avoid mistakes in a divorce. This way, the divorce agreement may take their situation into account and possibly put them in a better financial situation after the divorce. The alternative could be an unwelcome financial surprise in the future.