Few life events are as stressful and traumatic as divorce. In addition to the emotional damage, divorce can have long-lasting (even catastrophic) financial impacts. At Verisona Law, we’re determined to ensure that you don’t make mistakes that could put your long-term security at risk.
To that end, here are 5 financial pitfalls in divorce—and how to avoid them.
Jumping into a Second Marriage
It’s understandable if you want to move on after divorce. However, it’s important not to rush into a new relationship without finalising your financial settlement first. Otherwise, you could lose important rights. This situation is known as the “remarriage trap.” It’s one of the most common, and yet easily avoidable, divorce pitfalls.
See Major Family Law’s blog on the dangers of remarriage for more information.
Underestimating Asset Division
Pensions, investments, property, and savings all need to be properly valued to ensure a fair outcome. You may be surprised how often people make the mistake of assuming pre-marital assets are safe. With professional guidance, you can ensure that you value and divide your assets in a way that’s fair and in your best interests.
Misusing Separation Agreements
Separation agreements can help couples put financial arrangements in place prior to formal divorce proceedings. However, they are not legally binding in the same way that a consent order approved by the court is. As such, they can be disputed if there’s a significant change of circumstances or if the court believes the terms are unfair.
Ignoring Child Welfare in Financial Arrangements
Children’s welfare is always the court’s first consideration when it comes to divorce. This means that in some cases, financial orders can be influenced by their needs. As such, a clean 50/50 division of assets may not be appropriate where there are children involved.
Letting a Non-Cooperative Spouse Drag You Down
Regrettably, some spouses choose to delay or prolong proceedings by refusing to co-operate with solicitors. This can be costly and lead to a great deal of emotional stress. Fortunately, with the right solicitors, you can put measures in place to prevent gamesmanship from getting in the way of progress.
Why Verisona Law?
We recognise that every situation is different. That’s why we work with you to tailor our advice to your personal circumstances, goals, and needs. This can include:
- Providing clear and compassionate guidance on how to protect your financial interests
- Valuing and dividing assets in a fair and equitable way
- Ensuring financial arrangements prioritise your children
- Working towards a settlement that you can reach quickly and as amicably as possible
Contact Us
The process of divorce is never easy—but avoiding these five financial pitfalls can help make the road ahead less stressful.
If you’re facing this situation, our experienced team of family law specialists at Verisona Law is here to support you. Call us or get in touch today to arrange your confidential consultation.