If you are considering a divorce, a do-it-yourself divorce may seem attractive. You can save the time and expense of hiring an attorney, especially if you and your spouse agree on the terms. While you can complete a divorce on your own, you must avoid several common mistakes. Here are some financial pitfalls to watch for during a DIY divorce.
1. Mistakes on Divorce Requirements
Divorce is a legal process, so you must follow specific steps and meet certain conditions to have your divorce granted. Requirements can vary by state or county, including residency rules and processes depending on the length of your marriage. These variations make it challenging to know exactly what you must do to complete your divorce.
Many couples think the county clerk can provide guidance, but clerks cannot give legal advice. You must research all requirements on your own.
2. Not Understanding Your Legal Rights
You and your spouse each have legal rights in a divorce. If you don’t understand them, you may end up with an unfavorable outcome. Handling your divorce without legal help means you must research your rights and entitlements to ensure they are protected. Otherwise, your spouse could challenge the divorce and secure a better settlement.
3. Ignoring Tax Consequences
Divorce can have serious tax consequences. Without proper preparation, you could face unexpected tax bills or disputes over who must pay them. A divorce attorney can help you understand these changes and ensure your agreement does not leave you with surprise liabilities from the IRS.
4. Failing to Budget for Life After Divorce
Divorce often changes your financial situation significantly. Whether paying or receiving alimony and child support, your income may drop sharply. Before agreeing to a settlement, plan for how your finances will change and adjust your lifestyle to fit your new budget. Understanding post-divorce taxes is also essential.
5. Focusing Only on the Short-Term
Dividing assets and custody can feel overwhelming, but it is crucial to consider the long-term effects. If you try to keep the family home, ensure you can afford the mortgage, property taxes, and upkeep. Evaluate whether your asset division truly matches your goals, as not all assets carry the same value or benefits.
If you and your spouse are planning a divorce, it helps to know what lies ahead. Our Rhode Island divorce attorneys at Inman & Tourgee can guide you through the process. Whether you need representation for contested divorce litigation or mediation for an uncontested divorce, we are here to help.
Schedule a consultation to learn how we can assist you. Call our offices today at (401) 823-9200.
