A divorce is a confusing process for all that is involved. It’s much more complicated than saying “I do” was, and most people who have been through a divorce would agree that that’s an understatement. From the kids to serving papers, there are a lot of steps to go through in the divorce process. However, once it’s over, there is still much more to do, like putting the pieces of your life back together and healing.
Petrelli Previtera are exceptional divorce attorneys in Highlands Ranch. We offer compassionate care throughout your divorce process, explaining all of the steps to you and handling the heavy hitting so you can concentrate on moving on with your life. In this blog post, we’ll offer up more financial mistakes to avoid after a divorce. Contact our divorce law firm for your free consultation today!
MORE FINANCIAL MISTAKES TO AVOID AFTER A DIVORCE
Feeling Guilty About Your Ex’s Financial Situation
A divorce is a very emotional time for many people, and when your emotions are high, you can sometimes make mistakes. One common mistake Petrelli Previtera sees with regards to finances is feeling sorry for your ex’s financial situation, especially if you hold guilt over the divorce.
It’s not uncommon for your ex to hit you up for some money, especially right after the divorce has been finalized. We often see people give in to these demands by their ex-spouse. This is why we frequently recommend a no-contact period for at least 30 days after the ink has been signed, so that you can have a cooling off period where your emotions can level out. It’s important also to remember that your ex had his or her say in divorce court. Once the divorce is finalized, you don’t owe them anything than what is in the divorce decree. If they persist, you can call up your amazing divorce lawyer, and they can implement legal matters if necessary.
Ignoring April 15th like It’s the Plague
No one likes paying taxes. It’s somewhat easier when we pay sales tax and the like because the amount is already added onto the purchase price. However, paying federal and state taxes at the end of the year can be akin to torture when it’s a large amount.
Getting a divorce is no reason to ignore Uncle Sam. In fact, getting a divorce, as long as it’s in the calendar year prior to your filing, will most likely change your tax status, which can change your deductibles, your income level, and the like. Your capital gains exemption will change, your filing status, and taxes on assets sold.
>Petrelli Previtera recommends using a CPA (certified public accountant) for at least the first year after your divorce. If you make a mistake on your taxes (or elect to not pay them at all), the IRS will impose still late penalties on you — which can even add up to more than you’d pay a CPA to do your taxes.
Not Separating Joint Finances Completely When You Divorce
Part of this may be the guilt we previously mentioned from the divorce that you feel. However, one of the biggest mistakes Petrelli Previtera in Highlands Ranch sees made is accounts kept joint and not closed upon a divorce. Many people still have joint checking accounts, savings accounts, financial investments, credit cards, and loans after the divorce. This can lead to many financial headaches and legal headaches down the road, especially if you find yourself back in divorce court once again. Remember, if a debt is in both of your names, then you are both legally responsible for it, no matter when you legally divorced.
For instance, if your ex charges a bunch on your joint credit card, you still have to pay if he or she doesn’t. While car loans are a bit more difficult to separate, it can be done by refinancing the loan altogether to take the other party off.
We recommend that you close all bank accounts that are joint once all of the checks have cleared and the assets have been divided up by the court, and you open up your own accounts in just your name. That way, your ex has no access to the funds whatsoever.
Even more important, you open yourself up to another round in court over alimony and child support when both of you can see each other’s finances like an open book. You also could be charged by your spouse of violating the divorce decree by taking too much out of accounts on down the road that your spouse believes was his or hers. It’s just a can of worms you’d rather not open when you continue to have commingled funds after a divorce.
Paper is still king in the world of the court system (one of the last few bastions, probably). However, due to the paperless world we now live in, it’s harder and harder to get receipts, bank statements, and copies of legal work from places without paying research fees and printing fees, not to mention the added time it would take to hunt all of that up.
Petrelli Previtera recommends you keep every last shred of paper from the divorce process with you and don’t discard it. One other perk is that if you were married for over 10 years, you may be eligible for the Social Security benefits of your ex-spouse even if you’re divorced. And if you are taken back to court by your ex for more alimony or child support, you’ll have evidence to support your case.
Overspending as Therapy
After a divorce, you are probably emotionally spent. You may just want to take a break from your world and go shopping or take a vacation. While there is nothing wrong with either of these scenarios, spending exorbitantly with the excuse that it is making you feel better can have long-term consequences for your financial health.
That being said, Petrelli Previtera recommends you do take some time and heal in your way, but just do this in a fiscally responsible manner. Take one vacation instead of multiple, and go on a spa day, not a spa week. You’ll also want to be careful not to self-medicate in other unhealthful ways, such as with food, alcohol, or drugs. If you feel you are on the verge of depression, there are many amazing counselors in the Denver metro area that can help.
Going Back to Divorce Court
While we as divorce lawyers love our clients, we want what is best for you in all areas of your living situation, including finances. That means, we’d rather not return to court after having overlooked something the first go around. Court fees and attorney fees do add up quickly; hence, really think about what you want out of your divorce and about your future needs. Sure, circumstances can change, including financial circumstances, which can then lead to you being back in court with your ex. However, you want to do your best to only have to go to divorce court one time.
Petrelli Previtera in Highlands Ranch points out that going to divorce court can be avoided by hiring a great divorce law firm such as ours. When you partner with us, we’ll ensure every i is dotted and t crossed in order to maximize your time in court, save you money, and allow you to move on with your life.
HOW PETRELLI PREVITERA CAN HELP WITH THE DIVORCE PROCESS
When you are searching for the right divorce law firm, it can be challenging to find someone who is caring, compassionate, and who will fight for what you deserve. Petrelli Previtera in Highlands Ranch has all of those characteristics and more. We have 30 plus years of experience in divorce and family law and can help.
In addition to your standard divorce services, we offer help in all areas of family law, including help with civil unions, orders of protection, domestic violence, division of assets, paternity issues, child relocation, and grandparents’ rights. We always tell you exactly how we see it and do our best to communicate with you throughout the divorce process. We’ve dedicated our lives to helping you get yours back.
While divorce can be a scary, messy process, you do have help. We are here to help you get the most favorable outcome for your divorce. Whether you need help with parenting time, premarital agreements or paternity issues, we can help. Contact us today for a consultation!