If you are a resident in Arizona preparing to get divorced, there are some common errors that you should try to avoid to ensure a more stable financial life after the split. Preparation, information, and sound guidance can all help you prevent mistakes that might become costly later in life.
Choosing the right assets
When couples begin to negotiate the division of assets during divorce, they need to be clearly informed about each asset, its value, and any tax consequences that might arise if the asset is sold or money is withdrawn from the account. The decision of which asset is right for you will depend on a variety of factors, including your age and your situation in life. For someone close to retirement, negotiating for retirement and pension benefits is a sound idea. For someone who is young and can still save significantly for retirement, it might be wiser to opt for assets that might provide cash value quicker.
Be realistic about your budget and financial needs
The end of the marriage means that the income that two spouses brought home is now divided into two, so you will have significantly less to live on. If you do not make a realistic budget, which often includes having to cut down expenses, you might be surprised about the consequences.
Alimony might not be forever
Another mistake some people make is thinking that they will receive alimony and that those alimony payments will last forever. However, every case is different, and there are many reasons why you might lose those payments, including:
• The paying spouse losing his or her job or income
• The receiving spouse’s financial situation improving significantly
• The receiving spouse remarrying
Like with many other things in life, it is best to be prepared. Finances post-divorce are no different, so you do your research to inform yourself and, if needed, to seek professionals with experience to help you in the process.