Getting Divorced In Florida? Here Are Seven Common Financial Mistakes To Avoid
While it is never easy, divorce is something that many other people have gone through. The Centers for Disease Control and Prevention (CDC) reports that more than 630,000 married couples file for divorce nationwide each year. Far too many of these people make serious financial mistakes during the divorce process. In this article, our divorce lawyers highlight seven of the most common financial mistakes to avoid if you are going through a divorce in Florida.
- Not Getting Your Finances Organized
Perhaps the single most common reasons why people run into financial problems in divorce is because they fail to get themselves organized. At the outset of the divorce process, you need to sit down and carefully gather and organize all financial documents and records.
- Failing to Create a Workable Budget
You need a workable budget for during and after your divorce. A divorce is a point of financial vulnerability for many people. It is crucial that you take the time to create a budget that you can actually follow.
- Not Understanding Equitable Distribution
Florida is an equitable property division state (Florida Statute § 61.075). All of a divorcing couple’s marital assets will be divided in a manner deemed fair—a 50/50 split is not mandatory. It is crucial that you are prepared for the implications of the equitable property division law.
- Hiding Assets
Florida law requires all parties to a divorce to make comprehensive and accurate financial disclosures. If someone improperly hides assets from their spouse, there could be serious ramifications. A Florida court may even award an unequal distribution of property as a remedy.
- Wasting Marital Funds
During the divorce process, marital funds need to be protected. If one person wastes money—gambling, extravagant spending, etc—they could be penalized in the equitable distribution process. If you believe your spouse is wasting joint assets, you need to take immediate action. A Florida divorce attorney can help.
- Making Early Withdrawals From a Retirement Account
There are special regulations in place for tax advantaged retirement accounts. Do not make an early withdrawal to divide the assets. You could be hit with a major financial penalty. An experienced Florida divorce lawyer will help you divide retirement assets properly with a Qualified Domestic Relations Order (QDRO).
- Waiting too Long to Set Up Separate Accounts
A big part of divorce is disentangling your life from your spouse’s life—and that includes your finances. Do not wait too long to start setting up a separate account. You will want a smooth transition. Getting the logistics right—from setting up new checking accounts to figuring out your future living situation—can make a big difference.
Schedule a Confidential Consultation With a Divorce Lawyer in South Florida
At Williams & Varsegi, LLC, we have the know-how and expertise to help you protect your finances during and after your divorce. Contact us today to set up your fully private case review with an experienced divorce lawyer. From our legal office in Boca Raton, we provide family and divorce representation throughout Southeast Florida.