Financial mistakes, by their very nature, can be costly and should be avoided as much as possible. This is perhaps seldom truer than when a person is going through a divorce in Georgia. Divorce can be financially and emotionally draining, and the temptation to make use of what appears to be easy money could in reality result in a very costly mistake.
There are some pitfalls that can be avoided to reduce the chance of a financial mishap. Retail therapy is a frequent tool for lifting one’s spirits. However, this may not be the time to buy the sports car one has always wanted. Investments are typically viewed as long-term assets and shouldn’t be tapped to reduce debts. This could impact one’s tax liability as could early withdrawals from a 401(k) account.
Another costly mistake can be in keeping a home or in thinking that one is doing a favor by giving it to a spouse. The reality is that the mortgage and upkeep required on the home may not be sustainable. While it can be emotionally difficult to part with a family home, it may make more sense financially to downsize to something smaller.
Yes, divorce can be costly. But if one can think rationally, come up with a financial plan and attempt to view the future in a positive light, some of the pitfalls may be avoided. A person in Georgia who is contemplating divorce can further protect him or herself by seeking the advice of a knowledgeable family law attorney. A lawyer can review a client’s financial situation and may be able to make recommendations for options that will optimize the monetary outcome.