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Financial mistakes commonly made by a rushed divorce

On Behalf of | Feb 1, 2022 | Family Law |

Divorce is a stressful situation whether it was sudden or an agreement in Spokane, Washington. One way to help lessen the stressful situation is to minimize the facial damage. Each party wants to put themselves in the best position, but there are mistakes to avoid during a divorce.

Rushing the process

Both parties in a divorce often want the other person out of their lives quickly. Especially if there was any type of abuse in the relationship. Rushing a divorce can lead to an unfair division of assets. One party could take advantage of the other because they know they don’t want to start over.

Refusing to try mediation or arbitration

An alternative to court is mediation and arbitration, which can save time and expenses. Each spouse has more control over family matters and outcomes instead of allowing a judge to handle them.

Misvaluing material assets

There are various ways to value assets, especially when dealing with complex ones such as a business. Each spouse can have an independent asset valuation. A judge, arbitrator or mediator can look them over and divide the assets fairly. Assets often change during a marriage, and an independent valuation can untangle complex assets.

Spouse’s could miss hidden assets

A party can hide assets through trusts or overseas accounts. Parties can keep more than they’re entitled to during a divorce, such as transferring assets to family members or friends. A professional can look for hidden assets during a divorce.

Having an unfair share of marital debts

Responsibility and liability for debt differ from state to state. Parties can review copies of debts such as auto, personal loans, student loans, mortgage loans or credit cards to help understand the marital debt. It’s important to identify business liabilities, such as bad credit during a divorce.

Not thinking long term

Both spouses may have retirement accounts during a marriage, but not jointly. A qualified domestic relations order divides retirement plans without favoring either party. Rushing child support risks only factoring in regular and daily expenses for a child. Child support is until adulthood and should include conversations about healthcare and education expenses.

There are many ways to protect spouses financially during a divorce. The first thing spouses can do is close joint credit card accounts. People don’t want to rush divorce when handling important assets or child support. People should take time to look over retirement accounts and marital debts.