Posted on in Divorce
The divorce process in Texas can be complicated and unpleasant. Between the paperwork, negotiation, stress, and expense, most people are glad when their divorce ends. Unfortunately, people often make mistakes that prolong their divorce, cost them more money, and make it more difficult to obtain a favorable outcome. Although the following list is not comprehensive, avoiding the following mistakes can help your divorce move faster and more smoothly, saving you time and money in the long run.
Failing to Comprehensively Understand Your Finances
In order to negotiate wisely and achieve a division of assets that works in both your short- and long-term favor, you need to understand your entire financial situation. This includes your assets, but also your monthly expenses and debt obligations. On top of this, you will need to estimate your and your family’s future expenses without the benefit of two incomes. Working with financial professionals like accountants and money managers can help with this process.
Fighting Over Unimportant Things
Nobody gets exactly what they want in a divorce. Couples often prolong the asset division and custody allocation process by haggling over things that appeal to pride more than to practicality. There is truth in the unfortunate stereotype that couples can litigate away all of their wealth, often ending up with much less than if they had managed to compromise. Carefully choose the things that are of crucial importance, and let the rest go.
Settling for a Compromise with Negative Long-Term Implications
Finding financial balance in a divorce is tricky. While you do not want to bicker over things that are fundamentally unimportant, you also do not want to settle for a court order that negatively impacts your future finances. You may really want to keep the marital home, but if you give away other assets now and cannot keep up with mortgage payments in the future, you will find yourself not living in the marital home anyway. Make sure you consider the long-term implications of your divorce settlement before you sign it for good.
Forgetting About Taxes
One of the most important parts of life after divorce is the change in your tax situation. Your tax bracket, your filing status, and even the dependents you claim could all change. Federal law only allows one parent to claim a child as a dependent for tax purposes, and generally the parent with the most custodial time claims the child(ren). However, divorcing couples can agree to a different arrangement, such as splitting up the children so each parent can claim one or more children on their tax return.
Contact a Collin County Divorce Lawyer
Hiring an experienced Plano, Texas divorce attorney can help you avoid expensive mistakes in your divorce. The Law Office of Brian Bagley has experience handling complex divorce cases and will work with you to create a strategy that considers your unique circumstances and preferences. Call us today at (972) 843-7158 for a free consultation.