Pitfalls To Avoid For Divorcing Spouses

Pitfalls To Avoid For Divorcing Spouses

Divorce filings in North Carolina and around the country often surge in January. While the beginning of a new year may seem like an opportune time for spouses who are seeking a fresh start to file for divorce, family law experts caution that moving through the process too quickly can sometimes lead to problems that are difficult to resolve. Spouses who fail to ask questions or seek professional advice run the risk of making decisions that leave them with less than they may have received from divorce settlements as well as tax problems that could have been avoided.

When negotiating a property settlement, divorcing spouses should not forget to consider income that has been earned by their estranged partners but not yet received and often overlooked assets such as retirement plans and long-term investments. Another common mistake made by spouses is failing to consider the capital gains tax that could result if they were to sell assets received in a divorce settlement.

Once the divorce process has been initiated, spouses should cease using joint bank accounts. Matters like spousal support and property division can quickly become contentious, and all reasonable efforts to reduce financial vulnerability and exposure should be taken. Disputes may arise during property division negotiations when the spouses involved have an inflated opinion of how much assets such as real estate, investments or artwork are worth. To avoid such disagreements, experts recommend that spouses call in experienced appraisers and agree to respect their opinions.

Experienced family law attorneys may enlist the assistance of investigators or experts such as forensic accountants when they suspect that income is being concealed or assets hidden. Attorneys may also suggest precautionary measures that their clients may wish to take after studying their financial records and assessing their legal options.

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