Divorce is one of life’s most challenging transitions, and understanding the finer details can make a significant difference in securing a fair and equitable resolution. In the blog “10 Crucial Aspects Divorcing Couples Often Overlook,” we explore critical yet frequently neglected areas that can have long-term financial, emotional, and legal impacts. From the complexities of family finances and the tax implications of asset division to the importance of securing insurance and carefully selecting legal professionals, this guide offers practical insights to help you navigate the divorce process with confidence.
Whether you are contemplating divorce, in the midst of proceedings, or advising someone who is, recognizing potential pitfalls early can save time, money, and stress. We’ll also highlight how to handle emotions wisely, the value of clarity in agreements, and the necessity of picking battles wisely to preserve your well-being and future goals. Dive in to learn how to avoid common missteps and ensure your rights and interests are fully protected throughout the process.
1. Understanding Family Finances
You need a full understanding of your family finances and should obtain all relevant financial disclosures. If you don’t carefully check the financial documents, you could leave out valuable assets, retirement accounts, and other important sources of income. You could also fail to address material debts for which you could be held responsible after the divorce.
2. Overlooking Tax Implications
The real value of assets can differ substantially when you consider the tax implications of a sale. For example, a family home with a tax-free exclusion of $500,000 on sale is worth more than a retirement account, which is fully taxable at ordinary income tax rates and may include a 10% withdrawal penalty. Having an attorney with significant tax expertise is critical and invaluable in a more complex financial estate.
3. Avoiding Quick Settlements
Do NOT agree to a quick settlement simply to finalize the divorce. If you agree to equal parenting time when it is not warranted, you could live to regret it. Undoing such an agreement is extremely difficult and expensive. Once you give up financial claims or accept lower maintenance, it is virtually impossible to fix the problem without enormous costs.
4. Addressing Marital Debts
Do NOT ignore or neglect all marital debts. Creditors are indifferent to your divorce status and will hold you liable for debts. If you are signed onto debts or loans, you are liable, whether your spouse pays them or not. Make provisions for refinancing mortgages, and do not hand over deeds to houses or cash payments until you have been removed from liability for loans. You could ruin your credit or have the debts come back to bite you if you don’t cover these responsibilities. Pull a credit report and check all debts for which you are liable.
5. Securing Insurance
If you are receiving maintenance or child support, you need life insurance on your spouse’s life to cover the obligation in the event of their death. If you are receiving a property settlement over time, secure this obligation with life insurance in case the payer dies. Make sure that you move car and home insurance into your own name when the divorce takes place. You do not want your former spouse canceling insurance and leaving you without coverage. Make sure that you elect COBRA health insurance if eligible or obtain your own health insurance. Once you are divorced, your health insurance ends, and you could lose your life savings if you have no coverage and a major health event occurs.
6. Hiring Experienced Professionals
Attempting to navigate a complex divorce alone or hiring an inexperienced attorney can lead to mistakes that cost time and money and could be irreversible. Picking the attorney with the lowest retainer is a mistake. You will use that retainer in a very short space of time, and where you thought this would be cheaper, it’s actually more expensive. You get what you pay for. Top attorneys can work faster and more efficiently, as they are not gaining experience at your expense. The pandemic has unfortunately led to many attorneys who lack mentorship and training, and you should ensure that you choose an attorney who is trained, knowledgeable, and competent.
7. In-Person Meetings
In-person meetings often provide more value than remote meetings. Find out if your attorney is willing to meet in person or will work only online. Take advantage of in-person meetings—they provide better value and fewer misunderstandings. You should request that you be able to participate in person with your attorney in any mediations or court hearings. Being separated in remote locations provides more room for mistakes, miscommunications, and poor outcomes.
8. Managing Emotions
Do not let emotions drive decisions. Being angry, resentful, or seeking revenge is not helpful and will cloud your judgment. Focus on facts to secure the best outcome. Fighting on principle is not always a good decision.
9. Clarity in Agreements
Have clear provisions for children and finances. Do not leave with agreements to agree or the hope that you will be able to work things out in the future. There should always be a default provision if two spouses cannot agree. Vague provisions lead to conflict, dissatisfaction, and a return to litigation to fix the mistakes.
10. Picking Your Battles
You cannot win everything. Decide what issues are really important and need all your energy. Let go of the battles that are not worth the effort to fight. It will be cheaper, and you will be happier. Nobody wants to spend their lives in a courtroom or a lawyer’s office. Move forward with your future in mind.
Remember, this process is about more than just ending a marriage—it’s about securing your financial stability, protecting your family, and building a new chapter on solid ground. If you’re facing the challenges of divorce, let our experienced team guide you through this intricate process. Contact us today for a consultation and take the first step toward a more confident and secure tomorrow.
Suzanne Griffiths is the Managing Shareholder and CEO of Griffiths Law PC. She has been recognized by the Best Lawyers in America© since 2019 for family law and has been selected to Colorado Superlawyers since 2005. She has also been recognized in 5280 magazines for Top Lawyer in Family Law in Denver since 2016.