Divorce can take quite an emotional toll. Yet, Ohioans who focus solely on their emotional loss may fail to properly handle their financial matters, which could leave them starting their new life in a financial hole. Therefore, it is imperative that those seeking divorce educate themselves about the financial aspects of their dissolution so that they can ensure they protect their financial future.
There are many financial pitfalls in the divorce process which, if not handled correctly, can cause a whole host of problems. First, divorcing individuals should be sure to acquire a clear picture of the couple's assets and liabilities. Even if a spouse did not handle financial matters during the matters, it is critically important to become aware of all assets and debts. Therefore, one should look at tax returns, retirement accounts, and analyze property like furniture and collectibles.
Second, those going through a divorce should carefully consider whether fighting for the marital home is in their best interests. Though there may be financial attachments, giving up other property in exchange for the marital home may be a financial mistake. It might be too difficult to maintain on one salary, and the house may lose value after the divorce.
Third, divorcing individuals should think about how the divorce will change their monthly expenses. For example, health insurance costs may go up upon divorce. Also, those who have children may find themselves paying more for educational and extracurricular activities than when they were married.
There are many more financial matters that must be taken into account when deciding to get divorced. Just because the economy seems to be regaining its health does not mean that dissolving a marriage will make life easy financially. Therefore, those thinking about ending their marriage may want to speak with an attorney who can help them with divorce legal issues, settle disputes, and find an outlet for their emotions.
Source: The Wall Street Journal, "Divorce and Money: Six Costly Mistakes," Veronica Dagher, May 15, 2015