While it is an emotionally exhausting experience, not getting a divorce right can make you suffer financially for years long after everything has been signed and sealed. These are the costliest mistakes people make — and how to prevent them.
Hiding Assets or Income
Many people try to be devious by hiding banks, investments or income streams. This would not only be lying, but it is also extremely dangerous. The courts have received extensive tools to find hidden assets and when they do you will be penalised harshly. Another thing to mention is that there is a financial disclosure process for this reason– it offers full transparency and protection on both parties, in order to ensure all settlements are fair.
Ignoring Pension Rights
One of the most under-utilised assets in marriage is pensions, yet it is often the biggest. You even may end up seeing your spouse’s work place pension and their personal pensions along with state pension rights divided via the process of a Pension Sharing Order. Of course, not getting your money back in retirement could cost you hundreds of thousands.
Fighting Over Worthless Items
When those fixed costs are taken into account, spending up to £200 per hour arguing over furniture, ornaments or the family car is rarely value for money. Whilst these items hold sentimental value, arguments can draw out over household contents increasing the time for settlement and therefore cost.
Refusing Mediation
Pride and anger walk many into court, yet this is quite often the least cost-effective approach. Mediation is far less expensive than a contested court or administrative annulment hearing, and now offers improved prospects for everyone involved including the children.
Not Understanding Tax Implications
Some divorce settlements come with tax surprises. These factors include the capital gains tax on property transfers, inheritance tax planning and income taxes that may be imposed on maintenance payments. A deal that seems like a lot could be worth much less after taxes. Please always consult a tax professional if you are about to agree on any financial proposal.
Choosing the Wrong Solicitor
The lowest cost solicitor isn’t always the best value. Non-expert household lawyers might make gambles that end up placing you in situations costly to your pocket book, may omit crucial deadlines or could get you an unfair share. On the other hand, overly combative lawyers can drive up fees while not achieving better results. Pick a specialist family solicitor who is adept at negotiating fair settlements in super-quick time. For Family Law Solicitors Gloucester, consider https://deeandgriffin.co.uk/personal-legal-services/family-law-solicitors/gloucester/
Acting on Emotion
Divorce often inspires emotions that run deep, but making decisions based on anger or retaliation have financial repercussions. Raising the price in order to punish their spouse through court applications or using children as pawns will have a serious negative impact on your long-term health with family and friends.
