As a whole, divorce has declined throughout the United States. However, there are some areas where it is still a prevalent part of life for many people. In Arizona, 19.8 percent of the population of Florence has gone through a divorce, which is the highest in the state.
When a divorce is on the horizon, you need to prepare accordingly, especially when it comes to your finances. Here are some of the most common financial mistakes people make in divorce and what you can do to avoid them.
Underestimating your expenses
Divorce is a lengthy and expensive process. You need to prepare for how much you spend on legal representation during this time. You also need to prepare for anything else that could come up during this time. If you and your spouse will live separately during the divorce, which is a good idea, then you need to prepare for paying rent. You need to budget properly, so you do not burn through all your life savings at this time.
Assuming you will get an equal division of property
Most couples will get an equitable division of property, which does not always mean an equal division. For example, if you and your spouse own rental property together that generates income, then that will have greater value in the eyes of the court. Both spouses need to bring all assets to the table, and you need to take action if you believe your spouse has hidden assets.
Failing to think about long-term financial stability
If you were a stay-at-home parent, then you will need to go back to work, even if you will receive alimony. It likely will not be enough to cover all of your expenses. You need to consider whether you want to go back to school to learn new skills to enter the workforce. If that is the case, then you may be able to receive more spousal support in the short term.