Divorce Settlements 5 Financial Mistakes to Avoid

Divorce Settlements: 5 Financial Mistakes to Avoid

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Last Updated on April 3, 2024 by Emma White

It can sometimes feel like you are paying a high emotional price when you get divorced but it is just as likely that you could suffer some financial pain if you don’t get the right professional help to settle your divorce in the best way possible.

If you talk to someone with a lot of experience in these matters, such as Forte family lawyers, for instance, they will tell you that you have to take each step towards finalizing your divorce with the utmost care.

If you want to avoid some costly errors, here are some mistakes to avoid.

Trying to get divorced too quickly could be expensive

If you have decided to end your relationship permanently it is understandable that you will want to try and get your divorce through as quickly as possible so you can move on with your life.

One of the major issues with hurrying the divorce process is that it can lead to an unequal distribution of assets. Your ex-partner might try to take advantage of your desire to get divorced quickly and ask for more than they are entitled to.

Digging your heels in could be costly

Divorce settlements can be protracted and the terms of the settlement could be disputed. When there is a failure to agree on a deal it can lead to costly and acrimonious arguments.

Mediation and arbitration are designed to find a way to settle a disputed divorce.

It can often save you money when you agree to consider these options rather than keep paying more legal fees to fight your corner for longer than necessary.

Make sure you get the right valuation

Assets can be valued in a variety of different ways, especially when they include complex assets like business valuations and properties other than the marital home.

Make sure you get an independent valuation to confirm that assets are being valued fairly.

Accepting a settlement of what you know about

Some people have more sophisticated and hidden assets that they may try to exclude from a divorce settlement.

If you suspect your partner might be withholding details of assets that you are entitled to a share of, talk to your lawyer about how you can apply pressure to reveal potentially hidden assets.

Once your divorce is agreed upon, it could be costly to discover that your settlement is less than it should have been.

Check what your partner owes

Another potentially costly error is to find that you have been put in the frame to pay a proportion of debts that you didn’t know about or weren’t aware of the extent of the amount owed.

Get a credit report and ask questions about what debts your partner has. It is far better to uncover these amounts before it’s too late and your name becomes jointly liable.

These are all classic mistakes that can be costly. However, one of the most costly errors of all is when you fail to use a family lawyer who can cover all of the angles and ask all of the right questions to get you the right settlement.