Once you make the difficult decision to divorce, other difficult decisions await during the property division phase of the proceedings.
Here are four common property division mistakes and how you can avoid them.
1. Failing to consider a change
In Arkansas law, property settlement equity is essential in a divorce. However, it is a mistake to believe the status quo will continue. When the time comes to negotiate your settlement, consider what could change in your future. This might include healthcare changes, loss of employment or the depreciation of a major asset. Share the risk through insurance or add language in the settlement agreement to address the possibility of change.
2. Keeping unrealistic lifestyle expectations
You may wish to maintain your existing lifestyle or your children’s lifestyle, but this is likely not realistic in a post-divorce world. Think about your new budget and be mindful of overspending. Remind yourself how this could affect the overall financial goals you have for yourself and your children.
3. Ignoring the details
Depending on the assets you have, your divorce could be lengthy and complicated. Fatigue may cause you to overlook certain post-divorce details. It helps to make checklists of what to do when and set up a record-keeping system for support payments and to check costs for childcare expenses that you plan to share with the other parent.
4. Lacking basic financial knowledge
Your spouse may have handled the lion’s share of your marital finances. If so, now is the time to acquaint yourself with your current financial circumstances. Your attorney and financial adviser can provide guidance so that you can gain knowledge and prepare to enter the next stage of your life on a firm financial footing.