In Arizona, certain personal finance mistakes in a divorce can cost you dearly. What is worse is that their effects can stay with you for years, clouding your financial picture when you are trying to get a fresh start in life. However, by thinking ahead, you can avoid some of the errors that can put you in a bind.
Don’t make yourself “house poor”
One of the biggest mistakes that you can make is stretching too far to stay in the marital home. Sometimes, it is simply too expensive to remain in the house, and the best thing to do is put in on the market. However, many spouses will devote a larger than necessary share of their money to making the payments. Another error is not realizing until it is too late that taxes may need to be paid after the divorce. The reason for this is that divorce can require certain assets to be sold so that the money can be divided. This will trigger a capital gains tax liability.
Make a budget
Another thing that you must do is make a budget that reflects your new situation and stick to it. Many spouses project their old situation onto their new one and do not realize until it is too late that they are not taking in enough money to meet their expenses. You must think ahead of time when you are budgeting to avoid this.
You may not think of many of these things on your own during a divorce. A family law attorney may be able to help you think ahead while you are navigating the divorce. This way, you may negotiate the divorce agreement with an eye toward your future arrangements and avoid making costly mistakes.