No one enters into a marriage in Rhode island thinking the union will end in a Providence Family Court Divorce. The decision to divorce can be an emotional and stressful time, especially when there are children involved. Children can drive the turmoil of the settlement causing hasty decisions. During the divorce proceedings, the high running emotions between the couple can cause choices to be made quickly without realizing the financial impact on your life as a single person.
Awareness of the Financial Situation to avoid mistakes
People are often unaware of all the financial entitlements in a divorce. When you begin divorce proceedings, get all the financial data together. If the data is overwhelming, hiring a professional to guide you through all the paper work is a wise decision. You do not want to lose financial gains due to lack of knowledge.
The financial planner can take the time to explain the options regarding Social Security, life insurance policies, retirement pensions, and any other accounts. The financial planner can show you how bank accounts with the same balance as a retirement account are actually worth two different amounts. The unknown truths about a financial asset could mean you are settling for less in the finalization of the divorce.
If you are doubtful of the forthcoming of your spouse’s financial assets and accounts, a forensic accountant can also be hired to help with hidden data. A forensic account will go over all aspects of the finances; hidden accounts will be found. The financial planner can also help with the configuration of the tax laws which change at a rapid rate.
Trade-offs
Some people are often driven by the desire to secure custody of the children or the notion to get everything done quickly. For this reason, some people tend to agree to trade-offs assets without realizing the consequences of their actions. The mindset of getting everything done and out of the way can be damaging to your financial situation. Having a clear understanding of the value of all your assets and debt is a great way to begin.
When you take a trade-off option you may be settling for less than you deserve. You may not realize the price of the trade-off. For example, a trade-off of keeping the house and not settling on any alimony or having reduced child support may seem like a good deal during the divorce settlement proceedings. However, getting the house without realizing how the financial burden of the mortgage, house repairs, taxes and insurance will affect your financial situation as a single person may be an overwhelming event.
The equitable division should be implemented divided assets and debt. The decision should be made by both parties to divide the assets and debt as fair as possible. Avoid accepting trade-offs whenever possible until you know how the situation will affect you currently and in the future.
Primary Bread Winner Mindset
Making financial mistakes during a divorce in Rhode Island is not all one sided; both men and women make mistakes for the same reasons. They want the RI divorce to be done as quickly as possible. Often, men do not look at the divorce as change in their financial situation, especially when they have always been the primary breadwinner.
Divorces can be messy, especially with child custody issues and the division of assets. Both parties need to take the time to gather data on assets and debt to be divided as fair as possible. Knowing the worth of assets and the burdens of unsecured debts can cause on a financial situation should be addressed. By being knowledgeable with their current financial situation and looking toward the future, both parties can be given a fair start for their new lives apart.