People in Georgia probably know intuitively that divorce is a stressful time for all involved. Since people are not always thinking straight during this difficult time, it is fairly common for them to make important financial mistakes during a divorce that can also, in some cases, have legal implications as well.
For example, the first thing someone might think to do after a split is go and buy a bunch of new stuff or take a splurge on a vacation or some other fun activity they have been wanting to do. While this may be understandable, it is important to remember that it will not improve one’s financial situation.
In fact, since a person’s net household income and net worth will likely go down as a result of a divorce or legal separation, it may not be a good idea to do any unnecessary spending at all. From a legal perspective, a big, unnecessary expense can in the right circumstances lead to an accusation that one has dissipated marital assets.
Another common mistake is quit one’s current position and either take a break or accept a more emotionally fulfilling job that happens to pay quite a bit less. Even if this is not done as part of a plan to avoid a high alimony or child support payment, such a decision can still come back to haunt a person, as the lower income can really take a toll.
Moreover, judges usually have considerable leeway when it comes to setting up alimony, and even child support, to take in to account one’s earning potential as well as what they are actually making.
Finally, one should not be too quick to keep the marital residence. It may be a place full of memories and, thus, hard to say goodbye to, but for someone already in an income pinch, it can cause serious financial trouble in the form of mortgage payments, tax bills, insurance premiums and repair costs.
Perhaps the best way to prevent making these and other mistakes is to have the help of Carrollton, Georgia, divorce attorneys in making a strategic plan for getting one through an admittedly hard process.