The implications of a divorce can affect an individual for years. Because of the potential long-term effects that these family law decisions can have on virtually every area of life, it is beneficial to be familiar with common mistakes often made during a California divorce. Missteps and hasty decisions can prove costly and complicated down the road.
One of the most common mistakes made during a divorce is deciding to keep the family home. This may seem like the best choice, but it can actually lead to more costs than expected. One person may have a difficult time managing the cost of the mortgage, taxes and upkeep expenses on one income. This is often an emotion-based decision, and it is one that does not always pay off.
Failing to consider potential tax penalties is another common divorce mistake. Retaining certain assets, cashing out certain investment accounts or even splitting retirement accounts can come with tax penalties that can lead to a serious financial burden. To account for these potential costs and other financial implications, it may be helpful to create a post-divorce budget, even before the divorce is final, and stick to it.
Making mistakes during a divorce can impact a California spouse for years to come. Working with an experienced attorney at every step can help avoid costly family law decisions and instead make choices that will benefit the individual and his or her children well into the future. Every situation is different, and it is prudent to consider both what makes sense now and long-term before moving forward.