Avoid These Money Errors During Divorce

Financial issues to avoid during divorce

One of the trickier aspects of the divorce process beyond child custody is figuring out and managing finances, especially if there is no prenuptial agreement present and both spouses were accustomed to keeping a shared account. Since it can be tough to manage money during a marriage dissolution, it’s worth avoiding common money mistakes with divorce.

Hidden Assets

Hiding assets is not unusual yet there are consequences. It’s expected that both spouses be completely honest and upfront about their assets and any debts owed. By disguising properties, one party deprives the court of essential details. This may result in charges of civil as well as criminal contempt. To put it another way, it may result in jail time.

Retirement Savings

Just as the name suggests, retirement accounts are intended for use during retirement. Yet some people may entertain the thought of withdrawing any funds from their retirement accounts during or directly after a divorce. Unfortunately, early retirement withdrawals come with fines. The withdrawal of money from retirement accounts has tax implications. Hence, they can prove to be a costly mistake.

Child Support Payments

Child support is typically determined by the amount one of the parents make. However, should the court have suspicions that a person is intentionally underemployed such as quitting a job on purpose, it may decide to base the child support payments on what the parent could make versus what they actually make.

This update is provided by the firm Rafool, LLC. We have a strong reputation throughout Florida and we have numerous years of experience representing clients involved in complex divorce cases as well as other family law matters. Should you have any domestic or family issue, we are here to assist you by providing educated advice and skilled, professional advocacy. Call 305-567-9400 to speak with one of our Miami divorce attorneys.

This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.