Law Offices of Steven A. Dinneen

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Mind personal finance matters in a divorce

On Behalf of | Apr 23, 2020 | Divorce

Even California couples who have a large amount of assets may still feel a strain after a divorce as their expenses can still eat up a large proportion of their salaries. This can be aggravated by personal finance mistakes that they make during the divorce. People who are relatively well off still need to make sensible financial decisions when getting divorced.

Many people do not realize how much the house costs until they have to pay for it on their own. An expensive house can be difficult to maintain yet one spouse often insists on keeping that home no matter what it takes. Ultimately, this could end up being a large financial strain. Another mistake is to get caught by surprise when there are taxes due after a divorce is final. Of course, there is no such thing as a divorce tax but when assets are sold at a gain, there are taxes that must be paid. However, many spouses do not realize this until after the divorce agreement is signed and they receive the bill.

Finally, even spouses with higher net worths still need to budget after a divorce. Still, many people are either not used to budgeting or have expectations that are based on their old lifestyle. As a result, they may end up outspending what they can afford and end up in debt.

In a high-asset divorce, the attorney may helo look out for their clients by reminding them of what may happen in the future after the divorce agreement is signed. This might help focus them on seeking to get the best division of marital assets possible and a manageable support arrangement. The attorney’s role is to help the clients think of things that may have otherwise gotten lost in the shuffle of a divorce.