Common Mistakes Made in Divorce Actions With Respect to Children and Finances
Typically in a divorce action one or both parties have a lot of hostility and animosity toward one another. Individuals make a barrage of mistakes. Some mistakes may not only be harmful to the individual himself but may also be financially harmful.
Parents often use their children as bargaining chips in the divorce process. Often times one parent may try to disparage the other parent or try to bribe their children so that they will want to stay with them when the divorce is completed. Parents should not lie to their children and should tell their children what is going on and what a divorce actually entails. It is often recommended that parents and children attend counseling while going through the divorce process.
Parents should also be flexible with parenting and visitation schedules. It is difficult, especially at the beginning of the divorce process to be flexible and amicable, but in the interests of the children, parents should strive to be.
First, if one party believes that a divorce is imminent, that party should make copies of financial documents for protection. Second, both parties should produce an accurate budget of what their basic expenses will be each month. Third, both parties should consider mediation as a means to resolve their divorce action. Mediation is far less costly and may be quicker than litigating a divorce action. Fourth, both parties must consider the tax implications of obtaining a divorce. The parties may want to file their divorce action at a certain time of year for tax purposes. The parties should consult an accountant to assist with tax issues with respect to their divorce action. Fifth, the parties should not exclude the consideration of accepting a fair settlement offer from the opposing party.
Additionally, the parties should make sure to update their estate planning documents, life insurance beneficiaries, and pension beneficiaries. The parties should also remember to take inflation into consideration when constructing a divorce settlement agreement.
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