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Common financial mistakes you should avoid during divorce

On Behalf of | Sep 9, 2021 | Divorce |

Going through a divorce can be draining both emotionally and financially. If you and your spouse are divorcing in Wisconsin, you have a lot to consider, including the settlement. You will want to avoid making some common financial mistakes during the process.

Putting the wrong value on assets

Getting a divorce means dividing your marital assets. Unfortunately, a common mistake people make is putting the wrong value on their assets. To avoid this, you and your spouse may both want to have valuations done for your large assets.

Not acknowledging marital debts

You might not know that your spouse has amassed large debts. Obtaining copies of your credit reports from the major credit bureaus can help. Carefully review your credit reports and your spouse’s to check for any debts that may have been hidden. It’s best to stay on top of this due to debt being shared by spouses. Creditors can try to collect their debt from the debtor’s spouse, which means you may be responsible even if you didn’t know about the debt at all.

Not considering potential hidden assets

Sometimes, hidden assets are uncovered during a divorce. If you suspect that your spouse may have some undisclosed assets, you may want to hire a forensic accountant to look into things to see whether this is the case. If there are hidden assets, you don’t want to worry about missing out on your share.

Not considering long-term child support

Your children will need financial support from you and your spouse. Depending on their ages, they may need it in the long term. Don’t think solely about their daily needs; consider things they need throughout their childhood. This should include education, medical care, and fun activities your children may undertake.

Rushing through the divorce

It’s a huge mistake to rush through the divorce. While you might want to speed up the process to make it less emotional, it can cost you financially. Things can be missed with a fast divorce, and you may not get your fair share of assets.

Being on top of things during a divorce can help you to avoid financial mistakes. When you’re in the know, you may get a fairer settlement.