Preventing financial errors during divorce negotiations

On Behalf of | Jun 7, 2018 | High Asset Divorce

Negotiating a divorce settlement is a complex process, as many Texas residents have discovered, that can sometimes lead to preventable errors with serious financial consequences post-divorce. However, beginning the negotiation process with knowledge about their own financial position and some financial education can be a significant help in avoiding some of the potential mistakes.

One of the errors that divorcing persons often make is forgetting that situations can change quickly; not planning for these changes might result in a heavier financial weight after divorce. While the goal during divorce settlement negotiations is for an equitable and fair settlement, this often depends on the current situations, and if these circumstances change post-divorce, the settlement might not seem as fair. One way to fix this is by drafting a prenuptial or postnuptial agreement that outlines how things will be handled in case of a divorce.

Another error that people often make is not being fully aware of their financial situation before entering into negotiations. Experts recommend becoming aware of assets and liabilities before the marriage is even in trouble. This might be especially beneficial during a high-asset divorce where the assets might not be as clear as expected.

Divorcing couples should also beware of attempting to keep their post-divorce lifestyle exactly the same as during marriage as that might not be sustainable or possible. It might lead to misuse of funds and assets, and it can result in financial complications later on.

Those who are contemplating a divorce might seek guidance from a lawyer with experience with family law. A lawyer may provide further clarification about how to proceed with divorce negotiations and assist with drafting a prenuptial agreement or a divorce settlement.