If there is ever a time to be rational and unemotional about money, it is during a divorce. In most instances, however, emotions take center stage during the divorce process. While this is certainly understandable, many of these financial decisions can dramatically impact the lives of the couple involved as well as their children and other loved ones. Sadly, altering a financial faux pas usually becomes more difficult once the divorce papers have been signed. Read more to learn about Financial Mistakes to Avoid During a Divorce.

Even if a divorce appears on the surface to be amicable, transparency and honesty often get cloudy in the transition from the married to single status. People facing an uncertain future may resort to skewing the truth if it means coming out better than worst on the other end. And, nowhere is duplicity more evident than when it comes to divvying up finances.

The following are some steps you can take to avoid derailing your financial future during or after a divorce.

1. Compile a list of your assets. Make an accurate account of all financial information including income versus expenses, debt, savings, and properties, etc. Keep in mind that hiding money or assets from your spouse is illegal. The legal terminology used by the Internal Revenue Service to describe this behavior is “fraudulent conveyance” which can incur serious penalties and jail time in some instances. A divorce attorney can help you to complete a “Statement of Net Worth” which itemizes your marital property and provide an accurate picture of your financial status.
2. Evaluate the cost of your new lifestyle. Failure to estimate what your new lifestyle will cost after the divorce can cause you to make financial mistakes such as depleting savings or dipping into a retirement fund. Many people end up giving up more than they can reasonably afford during a split. This usually happens because they have been worn down by arguments and conflict. Make sure the divorce settlement agreement is explicit and fair. A financial planner can simplify the financial division process, and IRS issues as well as create a financial plan for your new life based on your income, expenses, assets, and liabilities.
3. Consider tax implications. Divorce can affect income tax issues relevant to investment, money and property transfers. The IRS will also want information about alimony, IRA, name and address changes.
4. Ignoring the potential impact of Inflation. In order to make an accurate forecast of expenses during a divorce, it is important to consider the effect of inflation. This could have a direct impact on retirement and your children’s education down the road.

Be proactive about protecting existing finances. A financially savvy spouse often gains an unfair advantage over a husband or wife that has no clue about the couple’s monetary status. Be aware that your spouse can liquidate property, transfer cash and retitle assets without your consent. Don’t wait too long to separate joint accounts, double check credit history and change common passwords. Also, take the time to talk to your creditors about debt obligations. Don’t assume your ex will continue to honor a debt repayment agreement after the divorce. If you can, make sure your name is removed from any property that was signed over to your spouse. If you want to learn more please contact The Law Offices of Nugent Zborowski @ 561-844-1200

 

 

The Law Offices of Nugent Zborowski
631 US-1, Suite 402
North Palm Beach, FL 33408
561-844-1200
www.nugentlawfirm.com

 

© Copyright 2019. All Rights Reserved.

 

 

Decision making is a critical component of Divorce. When significant assets and children are involved, it is even more important that final decisions are mutually acceptable, provide room for variables and address the needs of all involved. For this reason, many couples choose mediation over traditional divorce litigation. Read more to learn about 7 Benefits of Divorce Mediation.

The mediation process is designed to help divorcing couples to resolve disputes outside of the courtroom. It accentuates cooperation in a neutral versus an adversarial context. The goal of divorce mediation is to provide a non-confrontational environment that facilitates equitable, rational and positive conflict resolutions.

The mediation process is also guided by the Model Standards of Practice for Family and Divorce Mediation. It is a unified set of canons that has evolved through a collaboration of a symposium of entities such as the American Bar Association, Academy of Family Mediators, Association of Family Courts and Community Professionals, and other national, state and regional mediation organizations. The most current Standards incorporate issues such as domestic violence and child abuse and is so designed to consider the best interests of children in the divorce process. It also aims to provide parameters or guidelines that help to…

• Streamline Mediator conduct.
• Inform mediating participants of the dynamics of the mediation process.
• Enhance public confidence in the viability of the family and divorce mediation practice.

Some of the most recognized benefits of divorce mediation include:

1. More cost and time efficiency. Because a primary goal of the mediation process is to mitigate disputes as quickly as possible, this naturally translates into savings in both time and money.
2. Greater control over divorce settlement terms. In other words, the couple rather than the decision of a judge decides what happens relevant to the couple’s assets and the welfare of their children.
3. Reduced acrimony through focused and productive communication. With the assistance of a qualified, neutral third-party, the divorcing couple is better able to express their differing perspectives and be heard when it occurs in a conciliatory rather than adversarial atmosphere. This also gives couples a chance to reduce, explore and evaluate options as well as to negotiate and refine decisions.
4. Ensures appropriate asset analysis and distribution with the assistance of professionals such as real estate appraisers, tax accountants, and attorneys.
5. Privacy. Meetings, documents and work notes of the mediation process are treated as privileged and confidential as opposed to a traditional courtroom proceeding that occurs in a public arena. It can also protect children from exposure to custody trials and in-depth inquiries.
6. Flexibility. Mediators typically work around the divorcing couple’s schedule. This can provide increased opportunities to address sticking points in order to achieve more effective post-divorce or co-parenting resolutions.
7. Once mediation agreements and signed off by all appropriate parties, it becomes a legally binding document that is enforceable by a Florida court.

Mediation is not always the ideal option for every divorce situation. However, in situations where it is appropriate, couples typically attest to the fact that it facilitates more harmonious communication with respect to the making of major and potentially life-impacting decisions. In contrast to the usual acrimonious nature of divorce proceedings, mediation has also been shown to facilitate the development of solutions that are more tailored to the divorcing couples unique set of circumstances. For more information on 7 Benefits of Divorce Mediation contact The Law Offices of Nugent Zborowski @ 561-844-1200.

 

 

The Law Offices of Nugent Zborowski
631 US-1, Suite 402
North Palm Beach, FL 33408
561-844-1200
www.nugentlawfirm.com

 

© Copyright 2019. All Rights Reserved.