When it comes to the year, it is often that January is the start for many who wish to have divorces. Yes for it is uncommon in the world of law that this particular month is the time of year where many start plans for their divorces and decide if they indeed are committed to doing such legal action.
That is why we made a neat little list of ten things to avoid when it comes to your financial matters in the event that you decide to settle on a divorce for your marriage.
1. Do Not Ignore Your Credit
If for some reason the credit was all tied to one particular spouse in the relationship, then it is best to consider establishing your own credit history as soon as you can. Make sure to have your own credit card and account with your name on it so that you can start building, or rebuilding your credit so that it is easier to handle the financial situations of your divorce case.
2. Do Not Focus On The Past – Deal With The Present!
When it comes to financials, it is also easy to look to the past and “teach” a lesson to your ex-spouse. While in the short time it will make you feel “better”, in the long term of your pending divorce case, it can cause some serious damage to your side of the case. It is also important to understand that the laws don’t care about your feelings, so the idea of revenge is truly not worth it.
3. Improperly Dividing Your Retirement Benefits
What a majority of people like to think when it comes to divorce agreements that it is enough to simply divide the pension or your 401ks. However, there is also something called a Qualified Domestic Relations Order, or a QDRO. A QRDO is needed in order to avoid tax penalties that can be associated to say retirement benefits.
4. Only Relying On Opinions Of Lawyers
By only relying on your lawyer or the lawyer involved in your divorce case will only result in catastrophe. It is best to find the right people who you can trust that can help with portfolio management, intellectual property management, and more.
5. Not Complying To Tax Implications
Though the IRS does treat many transfer that occur during divorce cases as an incident to divorce. What this means is that taxes of the spouses can be ramified and fixed as well as be non-taxable in certain cases. It helps if you are about to lose money due to tax issues that are occurring in your divorce case.
Farbod Majd Esq.
Divorce Attorney w/ offices in Beverly Hills/Los Angeles
Services in English, Turkish, and Farsi/Persian (Iranian/American Lawyer)
8383 Wilshire Blvd Suite 646, Beverly Hills, CA 90211
310.956.4600 | Fax: 310.878.8989 | [email protected]