The most common mistakes attorneys and clients make during a
divorce include not considering the tax
consequences of a settlement, allowing family and friends to interfere with decisions, allowing emotions to dictate decisions, forgetting you may need cash after the
divorce, not securing
divorce payments with insurance, trying to hide facts or assets, quitting a job to
get more child support or alimony, failing to prepare for settlement negotiations or mediation, dating during a
divorce, putting the children in the middle
of the
divorce,
getting emotionally attached to an assets, and neglecting post-
divorce financial planning.
Consider tax
consequences when
getting divorced, For example, if stocks are involved in the division
of property, remember that income derived from them is taxed at a lower rate than that
of money (income) from a bank account.
If you don't understand the tax
consequences of your
divorce, you may end up with a
divorce settlement that is very different than the one you thought you were
getting when you settled your case.