Debunking Divorce and Money Myths: Even Amicable Divorces Can Cause Financial Issues

 Posted on December 14, 2016 in Divorce

Couples often assume that an amicable divorce automatically means easy. Yet this is not always the case. In fact, even non-contentious divorces can result in serious financial problems for one or both parties. Learning the potential pitfalls of divorce, and how they might apply to your particular situation, can help you avoid this all-too-common problem. The following explains further.

Amicable Does Not Always Mean Easy

Divorce is not always about getting away from a contentious situation. Some couples grow apart, want different things, or simply realize that each would be happier on their own. The ill feelings and anger is not present, and each may still love and want the best for the other. They may not argue or sweat the small stuff. They may even be willing to part with more, simply because they want their partner to be happy and cared for once the divorce is over. It sounds like a divorce made in heaven (if there were such a thing) – an easy and fairly straightforward process. It might not be.

Amicable divorces – particularly those with a high net worth or great disparity in incomes – can be just as financially complex as contentious ones. In fact, some may be even riskier for the higher-earning party. They may want to give more to ensure their partner will be financially stable, or they may unintentionally transfer tax consequences to their soon-to-be ex-spouse. Whatever the situation, it is one that couples should consider carefully.

Understanding the Potential Pitfalls (and How to Avoid Them)

Some of the most common issues in amicable divorces related to short-sidedness when it comes to matters like retirement and future income. Couples may split a retirement account without thinking of their future earning potential, or without fully understanding how their specific retirement plan works. Alternatively, they may fail to obtain proper valuation for things like businesses, real estate, and other large assets, which can put one or both parties at risk once the divorce is over. Finally, couples may overestimate their ability to restore lost income or depleted retirement accounts, putting their future in danger. These can all be avoided with the help of an experienced attorney.

Contact Our Seasoned Joliet Divorce Lawyers

Your divorce does not have to be a battle, but it does deserve the insight and assistance of a seasoned legal professional. At the Law Offices of Tedone and Morton, P.C., we recognize that every case is unique and every client receives our personalized touch. We will work hard to protect your financial future, regardless of the complexity of your case. To learn more, schedule a consultation with our dedicated Joliet divorce lawyers. Call 815-666-1285 today.

Source:

http://www.chicagotribune.com/lifestyles/ct-divorce-and-finances-20161209-story.html