On behalf of Stange Law Firm, PC posted in Property Division on Thursday, July 31, 2014.
Divorce is a difficult process. From navigating through the emotional turmoil of an ending relationship to attempting to split finances, divorce can be overwhelming. Whether a divorce is contentious or not, it can be easy for couples to fall into the “money grab” trap. Although coming out of the divorce with the larger chunk of money in the present may feel like a win, it could lead to financial insecurity in the future.
The issue was recently addressed in an article by The Wall Street Journal. In the piece, the author notes that one of the most common financial pitfalls in a divorce can be the family home. It is tempting to fight to keep this piece of property, particularly if children are present. The desire to offer children some sense of stability can be overwhelming and may overshadow the negative financial impact this decision could have. Before fighting for the home, carefully consider the implications. Can you afford monthly mortgage payments on one income? Can you afford the taxes along with maintenance and upkeep? What about unforeseeable expenses, like a broken furnace or leaky roof?
Keeping the family home can be even more financially damaging if it means giving up a large portion of retirement assets. Generally, it is best to get a balance of assets to help better ensure financial security in the future.
Navigating through this issue can be difficult, and it’s only one of many that can arise during a divorce. As a result, those going through a split are wise to seek the counsel of an experienced property division attorney. This legal professional will help explain the process and work towards helping your best interests.
Source: The Wall Street Journal, “Divorce isn’t just about the money grab,” Larry Stein, July 28, 2014