Some things do not change with time. One example: the fact that money continues to cause problems within relationships.
Some interesting recent findings include:
- Financial disputes are a problem. Arguments over finances remain a cause of discord within relationships. A study by SunTrust Bank surveyed over 2,000 adults and reported 35 percent of participants reported finances as the primary cause of dispute with their partner.
- Credit card discrepancy fuels disputes. The Federal Reserve Board reports couples are more likely to find themselves in a contentious relationship if there is a large discrepancy between their credit scores.
- Strong economy signals surge in divorce. A recent piece in CNBC calls attention to the connection between an increase in divorce filings and an economic boom. Generally, divorces decline during economic downturns and increase when the economy strengthens. This trend was discussed in more detail in a previous article, available here.
Unfortunately, disputes about money leading to a divorce are just the beginning. In these situations, the disputes can translate to a contentious divorce.
Fights about who gets what during divorce are not uncommon. It is generally in your best interest to think logically during this time of emotional turmoil — especially when it comes to property distribution.
Avoiding Common Errors When Distributing Property
One of the biggest financial errors that can occur when distributing assets during a divorce involves disputes over the family home. Before becoming emotionally tied to the idea of keeping this piece of property, carefully consider the financial implications. Take into account more than the cost of the home itself but also tax obligations, maintenance costs, repairs and future remodeling expenses. Review these numbers before making a final decision.
If you choose to keep real estate, you may lose out on other assets. It is generally wise to have a diversified portfolio. Real estate is a solid asset, but it is also a good idea to have retirement assets and more liquid accounts like savings and brokerage accounts.
Those who are getting spousal maintenance or child support payments may also want to consider the addition of a life insurance policy on their ex-spouse. This can serve as an extra safety net to better ensure financial stability after the divorce.
Mitigate Risks With A Skilled Divorce Attorney
A divorce attorney can serve as your legal advocate and caring guide through the divorce process. A lawyer can serve to protect your rights and reduce the risk of any surprises after the divorce is finalized.
To schedule a consultation with one of our attorneys, call (480) 503-9217 or fill out our online contact form.