While there's no doubt that divorce in Alabama can be emotionally trying, not handling it properly can result in years of financial problems that could have been prevented up front.
Creditcards.com offers seven post-divorce money mistakes in a recent column.
Birmingham Divorce Lawyers have dedicated years to helping people going through a divorce, which can be especially difficult when children are involved. But making sure that taxes in a Jefferson County divorce are handled correctly, for instance, can save you headaches in the future. Consulting with an experienced attorney can help assure that after the divorce is finalized the spouse will be able to move forward and not have to worry about revisiting this tough situation in their life again.
One commonly considered area of the divorce process is whether child support or alimony must be paid. Those are crucial financial considerations that must be hammered out in a divorce case. But beyond that there are many other areas that should be addressed, such as making sure you preserve your assets, prepare for a change in how your taxes may be affected and properly splitting your assets.
Starting over by maintaining a separate household and paying child support can be financially strapping and letting emotionally driven expenditures hurt your finances is a common, but avoidable, mistake. Taking hold of your finances during the divorce process can save you time and money — and years of rebuilding your quality of life.
Let Birmingham Divorce Lawyers help you figure out what terms of the divorce must be secured in order to make sure you don't face unnecessary struggle. It's not often that you can go back and adjust the divorce, so getting it right the first time is critical.
Here are some common financial traps divorced couples fall into after a split:
Ignorance: Some divorcees believe that because divorce documents spell out who must pay to what account, lenders don't care; in reality, they can go after both spouses.
Delusion: if you leaned on your spouse for income during the marriage, your cash flow may change and so must your expenditures. Especially with children involved, parents sometimes try to keep the standard of living in-tact.
Neglect: When a couple owns a home but doesn't remove the other's name from the documents and decides to stop making payments, it can ruin the credit of the other spouse.
Revenge: Wanting to ruin an ex by charging up the cards is a frequent response to betrayal, but it can leave the spender responsible for the balance. And closing out credit cards in a hurry can hurt your credit, so be wise.
Beauty: If one of the spouses has been dumped for a newer model, splurging on beautification could end up just leaving one spouse with a bunch of liabilities.
Competition: When one parent after a divorce can afford better things, the less-wealthy parent sometimes tries to keep up. But this can lead to bad debt and buying the kids' love won't work.
New Love: Getting sucked into a rebound relationship can be pricey, especially if one is tempted to loan out money to a new fling.
An experienced attorney can help you avoid most of these common pitfalls. Too often, a divorcing party sees the hiring of an attorney as stoking the fire. In reality, an attorney can protect your rights while keeping as much of the unnecessary emotions as possible out of the equation.
If you need to speak with a divorce lawyer in Birmingham, contact Eversole Law at 205-981-2450 for a free consultation.