Without a doubt, going through a marital breakup can be one of life’s most challenging experiences. Divorce is often emotionally and psychologically draining. The divorce process is also notorious for being expensive. For those in Arkansas who are going through the dissolution of a marriage, here are a few financial mistakes to avoid.
Ignoring expenses
Never ignore expenses heading into a divorce. Without an understanding of what monthly expenditures look like, those who are in this type of situation will not be able to adequately create an income plan once the divorce is finalized. Take into account how much is being spent each month and where that money is going, then try to estimate what future expenses will be.
Ignoring taxes
Divorce often means many changes with taxes. For example, those who are divorced will need to start filing as single and may also shift into a different tax bracket. It goes without saying that taxes can be very confusing, so it is recommended to consult with an accountant or financial planner.
Failing to complete processes
When assets are divided amid a divorce, the process continues even after the settlement is complete. Be sure to follow through with the required paperwork. For example, it may be necessary to refinance the home or file for a qualified domestic relations order (QDRO). Failing to follow through on these things only prolongs financial and emotional stress.
It can feel overwhelming to try and outline a financial plan amid the uncertainty of a marital breakup. Those in Arkansas who have questions about divorce could benefit by contacting a legal representative. An attorney knowledgeable in family law could help individuals obtain a financially favorable outcome and protect personal rights throughout the divorce process.