Part 1 of this article will be found here…
6. Not taking time to gather all the information. IIn trying to hurry your divorce or make the transaction of dissolving your marriage simple, make sure you have thought through everything that will affect your financial future – ask yourself what will the impact of these decisions be to you 5, 10, 15, 20 years from now?. What will happen to the value of your assets, investment funds and retirement funds? If you giving away half of your assets or walking away from certain assets how much harder will you have to work or save in order to replace that asset and at what financial cost? Go in eyes wide open, not wide shut.
7. Failing to untangle all joint finances. Keep your finances mingled and your financial future could be jeopardized if your former spouse defaults on payments, commits fraud, goes bankrupt, dies, gets cancer or becomes disabled. You might also be liable for any debt that your spouse has incurred under your name if you signed surety. Make sure you have worked out a way cut or minimize all financial ties that bind you before the divorce rather than after it. If you are going to keep certain assets together then ensure that you have a life assurance policy, with disability and dread disease on your spouse’s life that you own, pay for and will be the beneficiary of that policy on any of these events, along with a contract that states the time period and the decision that has to made on those assets. Otherwise you could find yourself being tied to assets and your former spouse for a lot longer than you bargained for.
8. Plan Practically – if you are relying on your spouse’s maintenance ensure that you have a life insurance policy you own, pay for and are the beneficiary – what happens if he dies or becomes disabled or gets a dread disease and can’t pay you maintenance? Divorce is a messy business, spouses do re-marry and your children’s inheritance options change by ensuring you have a life assurance policy you secure both their future and yours. Have this contract drawn up as part of the divorce agreement so that you don’t have to pay unnecessary taxes on your former spouse’s death.
9. Failing to take into account the amount of time you’ll to get your career back on track. If you gave up your career when you got married, it probably won’t be as easy as you thought to get back into the workforce. Don’t be surprised when the costs, both emotionally and financially of resuming your old business, juggling kids, lift clubs and household chores turn out to be greater than you’d thought. Think this through and allocate your finances accordingly. There is nothing worse than having regret at your haste in settling a divorce.