Researchers recently discovered an interesting trend in divorces across the country. March and August are peak times for couples to begin proceedings. The study concludes that this is because of the deep disappointment many feel after holidays or vacations do not meet their expectations. Driven by emotions, Pennsylvania couples may rush the process to get the divorce over with quickly. However, financial advisors recommend that those anticipating a high asset divorce move cautiously and avoid mistakes often made during this emotional time.
One recent survey revealed that 15 percent of people in a relationship hide bank accounts from their partners. Of those surveyed, 14 percent admitted lying about their earnings. This is why advisors recommend a careful investigation of and accounting for all assets. Additionally, joint accounts, whether assets or debts, may become liabilities after divorce, so removing oneself from them as quickly as possible is advised.
Most counselors suggest opening new accounts and separating one’s income well before papers are signed. Because studies show that the wealth of baby boomers may drop 77 percent after a divorce, it is seldom advisable to dip into retirement funds for divorce-related expenses or paying off debt. Startling research finds that the number of divorced people in their sixties who live at the poverty level is about 20 percent higher than married couples of that age.
People who allow their emotions to rule their judgement may end up making mistakes that cannot be undone. It is wise to have a professional appraise property or valuables so negotiations will be fair and practical. Additionally, agreeing to terms based on emotions may create conditions that one cannot live with in years following the divorce. Those in Pennsylvania facing a high asset divorce may avoid these mistakes by seeking the advice of a dedicated attorney who will guide them in decisions that will provide for their best interests.
Source: thefiscaltimes.com, “6 Money Mistakes to Avoid When You’re Getting a Divorce“, Kelli B. Grant, Aug. 26, 2016