North Carolina couples who are considering getting a divorce may already know that the divorce process can be difficult to navigate. However, there are certain mistakes people can make before and during a divorce that may make it even more difficult and result in expensive consequences.
One mistake that can have significant consequences in a divorce is not having all of the paperwork that may be needed. If there is a possibility of a divorce occurring, individuals should immediately begin to gather all of their financial information, such as the balances and account numbers for all financial accounts, which will not only be helpful for the divorce settlement but will also be useful for future tax and retirement planning. It is also likely that the Social Security statements that detail the earning records and projected future benefits of a spouse may be necessary. Additional paperwork that should be gathered includes receipts for purchases made for significant assets and for any home improvement expenses.
Another costly mistake to avoid during a divorce is not considering the tax implications of choices made regarding financial accounts. Financial assets, including retirement accounts, investments and property, may undergo certain tax treatments in the future that may significantly affect how much they are worth.
It is important that joint credit accounts are closed if a divorce is taking place. As long as their name is on a joint account, individuals can be held liable for the debt, even if their spouse agrees to assume responsibility for the debt.
A family law attorney might consider the factors of a divorce and may advise clients about how to address disputes regarding divorce legal issues. Depending on the circumstances of the divorce, negotiation may be used to obtain favorable settlement terms regarding spousal support and the division of financial assets.