Divorce can be complicated when there are a lot of assets and property involved. If this is the case in your divorce, you must avoid three common mistakes that some people in your situation make. By avoiding these mistakes, you can minimize the losses in your divorce without doing something illegal or harmful to your finances.
Hiding assets
People in Georgia must give their financial affidavits to get divorced. To avoid losing certain assets or property, some people hide them by transferring them to another bank account or giving them to a relative before the divorce. There are also other ways to hide assets, but all of them are illegal. If you report lower than actual income or understate or undervalue certain marital property, you could end up paying a costly fine and the fees of the attorney of your spouse.
Rushing the divorce
It is normal for you to want your divorce to end as soon as possible. However, rushing your divorce could only cause you to accept an unfair settlement. You could also lose assets you deserve if you don’t have everything properly documented or investigated. Because of that, it is advised to hire professionals like a lawyer or forensic accountant to investigate all the assets and property involved in your divorce. That way, you can make sure your spouse doesn’t hide assets away from you, and you could also get assurance that you are getting a fair share of everything you own.
Ignoring the tax implications
Winning the most property in a divorce is not convenient for everyone. Your divorce will have tax implications, and may not be in your best interest to ask for a lot of property if you believe you won’t be able to handle the taxes, especially if the property or asset is subject to capital gains in the future. Additionally, you may have to pay spousal and child support and taxes for any withdrawals or transfers you make from a bank account. Because of this, you must keep in mind the tax liability when you negotiate the division of your property.
Minimizing the impact of your divorce
You can minimize the negative impact of your divorce if you do things the right way. Hiding the assets, ignoring the tax implications and settling for an unfair amount can have bad consequences. Because of this, you must keep those things in mind when discussing the division of your property. Divorce is a legal proceeding, and you and your spouse should carry it out with the careful consideration it requires.
