Law Offices of Jacqueline R. McNuttLaw Office of Jacqueline McNutt
Free Consultation: 512-212-4840

Se Habla EspaƱol

Your Family Is Our Focus

scroll

view our Practice areas

Three costly divorce mistakes to avoid

Getting a divorce can cause a lot of fears. One of your biggest concerns as you separate may be your wealth and property. Ending your marriage can impact your financial well-being, especially if you make some costly errors along the way.

Thankfully, you can protect your assets. Here are some of the most expensive mistakes you should avoid so you can limit the financial consequences of your divorce.

Mistake one: Ignoring tax consequences

When you are dividing your marital property, make sure you compare taxable and nontaxable assets. Pre- and post-tax dollars are important for determining the true value of an asset. For example, if you get the house, you will face different tax consequences if you decide to sell it than if you receive distributions from a retirement account.

Mistake two: Missing assets

One of the first steps you should take when filing for divorce is making an inventory of every asset and liability. If you do not factor in every asset, you may not get a fair settlement. Do not forget about any stock options, business interests, pensions or bonuses. Your spouse may attempt to hide certain assets, so you may need a forensic accountant to help you discover any hidden money.

Mistake three: Raiding your retirement funds

Divorce can get expensive, but you should avoid tapping your retirement accounts at all costs. You may feel the temptation to use retirement funds to cover divorce bills or pay off debts, but this will only hurt your financial situation. Keep this money for your retirement. You do not want your divorce to ruin your retirement savings. Take out loans or use credit cards before you even consider using your retirement funds. 

Breaking up with your spouse will inevitably impact your finances, but you can safeguard your assets by avoiding these common missteps.

 

No Comments

Leave a comment
Comment Information
Email Us For a Response

Let Us Help You

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Law Office of Jacqueline McNutt
1712 N IH 35
San Marcos, TX 78666

Phone: 512-212-4840
Fax: 512-727-0165
Map & Directions

  • Pay Bills
  • LAWPAY Credit card processing
  • Visa MasterCard