Gail Vaz-Oxlade's Guide To:
Divorce
Money Mistakes
Financially Smart Divorce
For more than 25 years you have witnessed Gail Vaz-Oxlade's trademark straight-up money wisdom, both on Radio and Television, most notably as host of TVs Till Debt Do Us Part, Princess and Money Moron. Gail is a best-selling Canadian financial author.
Gail Vaz-Oxlade's Guide To
Divorce
Money Mistakes
Financially Smart Divorce
Bad Money Mistakes During Divorce
You should know the ugly truth first: even the most amicable divorce can leave you in financial ruin. In the course of your marriage, you most likely merged all of your assets, from your bank accounts to investments to ownership of property. All of these arrangements, once just a common aspect of a committed relationship, now have to be preserved and equitably split between two individuals.
You need to be aware of all the accounts you are responsible for, including bank accounts, mortgage loans, credit cards and utilities. This is the legal, sensible and ethical thing to do. In the process of allocating debt, canceling accounts and selling property, you and your spouse will probably be left with some liquid assets. The Common Sense Divorce will help you divide those assets before you walk out of each other’s lives.
“Do not sacrifice your hard-earned assets at the divorce table because your divorce is out of control. REMEMBER: Unchecked emotions will cost you your assets.” – Gail Vaz-Oxlade
The Unofficial Rules of Divorce:
- Divorce gets prickly, even in the most amicable situation
- It’s often less about the legalities and more about the money
- People make expensive mistakes because they don’t make a plan
- Before you do anything, understand your rights, obligations & complexities
The Unofficial Rules of Divorce:
- Divorce gets prickly, even in the most amicable situation
- It’s often less about the legalities and more about the money
- People make expensive mistakes because they don’t make a plan
- Before you do anything, understand your rights, obligations & complexities
Bad Money Mistakes During Divorce
Divorce can be a challenging time both emotionally and financially, and making poor money-related decisions during this period can have long-term consequences..
Here are some common money mistakes to avoid during a divorce:
Not Understanding Finances:
- Ignoring or being unaware of your financial situation is a significant mistake. Understand your assets, debts, income, and expenses. Consider working with a financial advisor to get a clear picture of your financial health.
Ignoring Tax Implications:
- Failing to consider the tax implications of financial decisions can lead to unexpected consequences. Understand how different assets are taxed, and consider consulting with a tax professional.
Overlooking Hidden Assets:
- Ensure full financial disclosure from both parties. Hidden assets can significantly impact the division of property and support arrangements. Be thorough in disclosing and reviewing financial information.
Emotional Spending:
- Emotional stress during divorce can lead to impulsive and emotional spending. Be mindful of your spending habits and try to make financial decisions based on rationality rather than emotions.
Agreeing to Unfair Settlements:
- Rushing into a settlement without fully understanding its implications can be a costly mistake. Take the time to review and understand the terms of any agreements, and consult with a lawyer to ensure they are fair and reasonable.
Not Budgeting for Post-Divorce Life:
- Many people underestimate the cost of living post-divorce. Create a realistic budget that considers your new financial situation, including housing, utilities, insurance, and other ongoing expenses.
Not Updating Beneficiaries and Legal Documents:
- Update beneficiaries on life insurance policies, retirement accounts, and other legal documents. Failing to do so may result in assets going to the wrong beneficiaries in the event of your death.
Keeping Joint Debts:
- Closing joint accounts and separating joint debts is crucial. Failing to do so can leave you responsible for your ex-spouse’s debts, affecting your credit and financial stability.
Ignoring Retirement Accounts:
- Forgetting about or undervaluing retirement accounts during the property division can have long-term consequences. Consult with a financial advisor to understand the implications of dividing or keeping retirement assets.
Not Seeking Professional Advice:
- Consulting with professionals such as financial advisors, tax professionals, and family law attorneys is essential. They can provide guidance and ensure that you make informed decisions based on your unique circumstances.
Divorce is a complex process, and making informed financial decisions is crucial for your future financial well-being. Seek professional advice, take the time to understand your financial situation, and make decisions that align with your long-term goals.
The Matrimonial Home — Too often divorce so negatively affects the credit of the individuals involved, that home purchasing becomes impossible for one or both, for year’s to come. You are going to need to have a place to live. And if there are children involved you are going to need a proper place for your children to stay.
The Common Sense Divorce works with Realtors and Mortgage Professionals who understand divorce. They will help you to have the house appraised and to actually sell the house… either to one of you or to someone else and divide the profit. The Common Sense Divorce can assist you in buying out your ex spouse or setting you up in a new home with your share of the preserved equity.