Nothing about getting a divorce is fun, but dealing with the financial implications of ending a marriage is perhaps the most stressful aspect of the proceedings. Even when you and your soon-to-be former spouse agree on child custody and other elements of your split, dealing with property division and other money matters can turn even the most amicable proceedings sour. 

The Divorce Center helps couples with online divorce in New Jersey. Based on our experience with thousands of couples, here are some of the biggest financial mistakes to avoid in a divorce. 

Don’t Make These Errors During a Divorce To Protect Your Wallet

Make no mistake: there are financial implications, some of them not-so-great, in every divorce proceeding. However, you can minimize the impact when you’re aware of the mistakes to avoid in a divorce.

Not Knowing How Much You Have 

It’s all too common for one spouse to be blissfully unaware of the state of the family’s finances, especially when one spouse is the primary breadwinner. Before heading into divorce proceedings, get an accurate picture of your financial situation as a couple so you aren’t blindsided during negotiations.

Letting Emotions Drive Your Decision-Making

Emotions run high when a marriage ends, but you cannot allow those feelings to control your financial decisions. This means not taking a “win at all costs” approach to property division, for example, and fighting for assets that you can’t reasonably afford to keep. You must be realistic about your financial position post-divorce, and keep your emotions out of the equation to prevent a major drain on your finances.

Failing To Understand the Tax Implications of Divorce

Ignoring the effect that ending your marriage can have on your taxes is one of the biggest mistakes to avoid in a divorce. The federal government has many rules regarding alimony payments, divorce settlements, and capital gains on property that can make a big difference to your finances if you don’t manage them correctly.

Before you accept a settlement just to get things over with and move on with your life, seek advice from a qualified professional about the impact on your tax burden to avoid common mistakes.

Not Understanding That Equitable Doesn’t Mean Equal

New York law calls for the equitable division of assets between divorcing spouses, but that doesn’t mean an even 50/50 split. The calculations that determine which partner gets which asset, which assets must be sold, and other distributions are complex. Your attorneys and the court will assess factors like the potential for assets to gain or lose value, for instance, which can make a big difference in what they consider equitable.

Therefore, expect that there will be some negotiation, and you may not get everything you want in the divorce settlement.

Get Qualified Legal Advice 

When you decide to end your marriage, the first step is to get legal advice from an experienced attorney so you know what mistakes to avoid in a divorce. The Divorce Center can help you with a financial checklist and other information to make the process as straightforward as possible.