Financial mistakes made during divorce can have long-term impact

| Feb 4, 2019 | Divorce

Financial issues can be just as problematic during the divorce process as they can be during the marriage itself. Unfortunately, if those going through divorce in Massachusetts make poor decisions when dealing with complex financial issues, it can cost them in the long run. Here are some mistakes that those navigating the process would be wise to avoid making.

First, some people neglect gathering important paperwork at the start of their divorce proceeding. Important documents to collect include statements detailing their future ex-spouses’ income records and what their Social Security benefits may be at retirement age. In addition, if people have remodeled their homes, they should dig up receipts for this work. In addition, it is critical to take note of the account numbers plus balances of shared financial accounts.

Another mistake made during divorce is not making decisions with their tax implications in mind. What some divorcing couples do not realize is that various assets might trigger differing tax consequences even if their face values are the same. This, in turn, might affect the worth of these assets.

Sadly, some mistakes made during a divorce proceeding may financially impact a person for years. For this reason, it is wise for divorcing spouses to each consult an attorney before making money-related decisions. A family law attorney in Massachusetts can help a person who is navigating divorce proceedings to pursue the most personally beneficial outcome when dealing with matters such as alimony and the distribution of marital assets in the Bay State.