Divorce is an emotional and challenging process for both parties. It is easy to allow temporary feelings to motivate certain decisions, but this often leads to results that are unsustainable and unwise. Mistakes make during a divorce can affect you for years to come, and it’s in your interests to know how to avoid missteps that could have a negative impact on you and your kids.
One way to avoid mistakes during an Arizona divorce is prepare yourself for the process ahead. There are critical legal and financial decisions you will have to make that will lay the foundation for your future. Practical and prudent choices will set you up for success, and it will be necessary to have a long-term perspective as you consider your options at every step of this process.
Preparing for your future
Ending your marriage will affect every area of your life, and you will have to face certain challenges and adjustments in your financial life. Preparing well and understanding the following common mistakes may help you make good choices for your future:
- Don’t cash in your investments to pay your current bills. The sale of appreciated assets could result in heavy tax penalties you may not be able to afford.
- Avoid making substantial unnecessary purchases until after your divorce is final. You may not be able to afford these things on one income.
- Remember how tax laws could affect you regardless of whether you will be making or receiving these payments.
- Don’t fight to keep the family home unless you are certain you can afford the mortgage and upkeep costs on your own.
- Don’t forget to make a financial plan that reflects your new circumstances, allowing you to adjust and rebuild as soon as possible.
Part of your effort to prepare well for your divorce should include gaining an understanding of the applicable tax laws that could affect you if you accept a settlement, sell the home, liquidate assets and make other significant financial decisions.
The future starts now
The decisions you make today could influence certain aspects of your life well into your future. It is in your interests to keep your sights on a strong future instead of getting revenge, acting on your anger or making hasty decisions. Knowing your rights, understanding how property division works and preparing for your divorce will help you lay the foundation for stability and security long term.
