If you are planning to file or going through a divorce, you should know that money matters will form a big part of your discussions. Here are some financial mistakes you shouldn't make during these negotiations:
Don't Confuse Equitable With Equal
Some people approach asset division with equality expectations; they expect the court to divide their marital assets equally. However, equal division of property is not what the court strives for during a divorce; equitable distribution of property is what matters. In this context, equitable is used to mean fair; that is, the court will divide the properties in a fair manner. For example, if your spouse has more personal assets than you, you may get a bigger share of the marital assets so that your partner doesn't end up much richer than you after the divorce.
Don't Ignore the Long-Term Effects
For every decision you make during asset division negotiations, you should think about the effect of your decision in the future. For example, if you are interested in giving up the family business so that you can get the marital home, you should first determine which of the two will be more valuable in the future. If you are battling to keep the vacation home, you should know the tax implications it may attract in the future. In short, take a long-term view of every decision you make.
Don't Make Emotional Decisions
Divorce is an emotional affair and it won't be easy to run away from your emotions altogether. However, you should not let your emotions rule over all the decisions you make. You need to get your emotions in check, even if it means seeing a therapist so that they don't ruin your financial life. For example, you shouldn't be too generous during the negotiations just because you want the process to be over; you will regret such decisions later. Another bad example of an emotional decision is electing to keep the marital home just because you don't want your partner to have it even though you can't afford the property.
Don't Fail To Investigate Your Suspicions
Lastly, it would be a mistake to conclude a divorce and sign the settlement agreement without investigating any suspicions you may have. Even for a litigated divorce, you shouldn't go through the motions and let the case conclude without investigating your concerns. For example, if you think your partner is hiding some assets, you should investigate the suspicions and put the matter t rest. It is much simpler to deal with such issues during the divorce than it is to raise them once the divorce is concluded.
For more information, consult with a divorce attorney.