How to Avoid Financial Revenge in a Divorce

Divorce is seldom a mutual arrangement. Someone’s feelings are bound to get hurt and when this mix of pain and regret combines with the end of a dream, lives can be destroyed. It is in our nature as human beings to lash out, to make someone feel as badly as they’ve made us feel and the shame of a divorce can make people act out in ways that may not reflect who they really are. It is important to protect yourself and your assets when a marriage is absolved. Here are a few important things to remember.

Instructions

Difficulty: Moderately Challenging

1. Get a lawyer. No one is looking out for you, except you and your lawyer. You don’t have to play dirty; but make sure you protect yourself first and foremost.
2. Don’t share the same lawyer with the person you are divorcing. Even the most amicable divorce can get ugly when it comes to the financial burden. If you're both trying hard to keep it friendly, try mediation, but if it's not working out, just let your lawyers handle it.
3. Know your rights. It is typical for dependent spouses to be granted temporary maintenance based on the length of their marriage.
4. Contrary to popular belief, husbands can get alimony. In today’s society, it is becoming as normal for woman to pay spousal support as it is for a man. When woman are as likely to be the primary breadwinner in a marriage, it is only right that the family laws have become gender neutral.
5. Don’t let your ex trash your credit. You might be surprised at how quickly your credit can be destroyed, so make sure to get a handle on loans and shared assets as quickly as possible. Even if your debt is allocated in the official divorce decree, make sure that your ex is following up on their part of the payments. Creditors don’t care about the circumstances behind a debt; if a debt is incurred in a joint account; both spouses are responsible for paying it off.
6. Consult a tax professional at the start of your divorce filing. Neglecting the tax man is one of the leading mistakes in a divorce and should be avoided at all costs. If you were still married on December 31st of the tax year, you should still file a joint return, but if you were divorced as of December 31 and you qualify, you should file as head of household.
7. Find out about penalties of early distribution of retirement assets and remember that some property assets, if sold, are subject to a capital-gains tax of up to 40 percent.

Tips & Warnings

• Consult your own lawyer.
• Educate yourself on the marriage and divorce laws in your state.
• Do not neglect your taxes.