Georgia couples who are getting a divorce should make sure they avoid certain financial errors that are common in these situations. One of those mistakes is assuming that it is possible to keep the family home on a single income. While some people want to do this for sentimental reasons, they may end up struggling and sacrificing savings for retirement or a child’s college education.
This and other poor financial choices could happen because of another common error, failing to make a post-divorce budget. Without this step, many people may be unrealistic about how their lifestyle might need to change afterwards. Part of this budget should include accounting for any taxes that selling property during the divorce could trigger. For example, some people might owe capital gains tax on the sale of a home. This might also happen if they sell securities or other investments.
During the turmoil of a divorce, it can be easy to forget about estate planning. However, these documents may need to be reviewed and updated. Trusts, wills, powers of attorney and beneficiary designations might be among the documents that need to be changed. People should also consider the cost of the divorce. They may spend less money if they are able to reach an agreement through negotiation instead of going to court.
An attorney may be able to assist with negotiations and with planning for the divorce. This might include discussing the possibilities for child custody and property division. During negotiations, it can be important to strike a balance between protecting financial interests and fighting over property instead of refusing to compromise. Before going into negotiations, people may want to review their assets and discuss various scenarios with their attorney to determine where compromise might be possible.