What are some financial mistakes to avoid during divorce?
Because finances are a very large part of any divorce in Ohio, it is essential that you have a solid plan going into negotiations or court for what you want to happen. It is also a good idea to ensure that you have all the information you need. Preparing for court will help you to make sure that you end up in the best possible financial situation. In addition, Forbes explains that there are several mistakes you want to avoid when it comes to finances and divorce.
Dipping too much into your savings or investment accounts can be a huge mistake. You may think you can replenish anything you take after the divorce, but that does not always happen. You should leave money alone in savings and investments so you can keep your finances in the best shape post-divorce.
Spending too much on buying new things. Since you will likely lose some assets in the divorce, you may think you need to go right out and replace them. Buying small items, such as a couch, may not be too big of a deal, but making large purchases, such as a car, is not a good idea. You need to wait until you see what your finances will be like after the divorce before you start spending any serious money or wracking up debt.
Ignoring taxes is a huge issue as well. Going back, if you take money from investments, you will have to pay taxes most likely. If you receive spousal support in the divorce, you will have to pay taxes on that. There are taxes associated with splitting retirement accounts as well. Do not forget about tax obligations. This information is for education and is not legal advice.