Costly Divorce Mistakes

You may be anxious to start your new life and want to finalize your divorce as quickly as possible. Choosing mediation or collaborative law is an important step toward a settlement that will be much faster and less expensive than litigating in court. However, you don’t want to rush too much, or you can make some very costly mistakes. As an experienced mediation divorce attorney, I can help you complete your divorce settlement as quickly as possible without making any of the following blunders that can cost you money and headaches.

Emotional mistakes

Going through a divorce is usually a very difficult process emotionally, and it is very easy to make emotionally driven decisions, which, in the end, turn out to be mistakes. That’s one of the reasons I specialize in mediation and collaborative law. These two options are less combative, more peaceful, and focused on cooperation to ensure that all parties involved benefit from the final divorce settlement.

Budgeting mistakes

When a couple has lived together for years, they may forget how much it costs to live alone. It’s important to carefully evaluate and accurately calculate all costs associated with living your own separate lives, as well as the costs of raising any children. We help our clients think through all those expenses, because if any are missed, your agreement may not cover your needs. It is equally important that those costs are not overstated.

Besides budgeting what it will cost you to live alone after the divorce, you must also keep in mind the likelihood of inflation and the ever-increasing costs of education for your children. These eventualities could be considered in an Agreement.

Financial mistakes

The more complex a couple’s financial situation, the more opportunities there are to make mistakes. As an experienced divorce mediator, I can provide you with guidelines and checklists to help you keep all these issues in mind. However, in certain circumstances, you may need to engage the help of a financial advisor or forensic accountant to ensure that both spouses are providing a complete picture of each of their financial assets. Items to consider to avoid costly mistakes:

• Forgotten, undisclosed, or hidden assets or debts (whether accidental or intentional)
• Incorrectly identifying all sources of income (salary, commission, bonuses, stock options, deferred compensation, retirement plan contribution matches, income from trusts and investments, capital gains/losses, etc.)
• Undervaluing or overvaluing a business asset
• Undervaluing or overvaluing tangible assets or collectibles (art, jewelry, etc.)
• Not addressing financial gifts and inheritance properly
• Forgetting about insurance costs (health, life, auto, home, etc.)
• Not taking out a life insurance policy on the partner providing spousal/child support
• Improperly or unfairly distributing retirement accounts
• Not considering the tax implications of your divorce, selling assets, etc.
• Forgetting to update beneficiaries and legal documents

Mediation and collaborative law both allow couples to negotiate what is best for each of them and their children. These options protect you from aggressive, painful, expensive, and drawn-out courtroom battles that eat up your money, increase stress and anxiety, and leave no one happy with the outcome.

As an experienced divorce mediator, I guide my clients through the divorce process, helping them avoid costly mistakes and empowering them to decide their own future, rather than depending on a judge to decide their fate. Reach out to our Doylestown, Bucks County office at (215) 345-5259 for a complimentary consultation to see how I can help you.