A divorce settlement is NOT an exact science. If the financial divorce settlement was a straightforward mathematical equation, we wouldn't need courts and lawyers to sort things out. Courts are usually required under family law legislation to consider a number of factors when deciding who gets what. Too many women settle for a 50% division of marital property WITHOUT considering things like significant differences between your husband's earnings and your own weekly/monthly income and any limitations your age or health may have on your ability to earn an income.
Another mistake is leaving the matrimonial home to the other spouse, EVEN IF you have the option to buy it out. Real estate has a habit of increasing in value without you having to do anything. If you overlook this and your spouse pays you, the problem is often that you don't have enough money to buy your own property. Deposits, stamp duty, legal fees, etc. Can put buying another home out of your reach. You are left paying dead money in rent.
Although not a common mistake, some women will try to maintain the marital home when they really cannot afford it financially. If buying out your spouse's interest in the home will mean you take out a large loan, you need to factor in monthly loan payments PLUS expenses such as rates, building insurance, liability insurance, and general maintenance costs. Only then will you know if you can really afford to keep the house.
Another problem is the failure to consider other matters such as alimony and child support PRIOR to the marital property division agreement. These are NOT matters to be dealt with in isolation.
The current value of the property is taken into account - not the replacement value. That said, if the family car is worth $10,000, it's often better to keep it. Too many women find they need a vehicle to get the kids to and from school, soccer practice, etc., and have had to spend twice what the family car cost just to replace it. The same mistake is sometimes made when it comes to marriage furniture and effects. They are usually second-hand (even if only recently purchased) and therefore not worth a lot of money. For example, a refrigerator that you paid $1,000 for new may now cost only a few hundred dollars. By keeping most of the furniture (if it's in good condition), you'll avoid paying a lot more money to replace it.
A property settlement can sometimes be amicable, but that doesn't mean it's fair. Don't accept the inflated financial values your spouse is likely to place on the property you want to keep and the low value he is likely to place on any property he actually wants to keep.
It's surprising that women (and sometimes men) fight over little things. By that, I mean fighting over things of little financial value. There is no point in paying hundreds of dollars in legal fees to argue over who gets a $50 wedding vase or a $150 stamp collection.
Another mistake is to overlook other assets such as boats, trailers, machinery, pensions, pension funds, stocks, shares, and life insurance as property and/or financial resources of the spouses.
Too many women believe that if they "soften up" on their property settlement claims, it will be easier to negotiate with their husbands about the children. This approach rarely produces the desired result. The only real result is usually that your spouse sees you as weak.
Another very common mistake is to seek divorce financial planning advice from a lawyer instead of a financial planner. What do lawyers know about financial planning?
Some women are lulled into believing that by reaching an informal agreement with their husbands is legally binding. It's not - even if it's written and signed by both parties.
Finally, too many women simply give in to their husbands because that's what they've always done. Now is the time to stand up for yourself. They are facing separation and divorce, which means that more than ever you have to worry about your financial future first and foremost!
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