Going through a divorce is among the most stressful circumstances in a person’s life, and people are at risk of making irrational decisions when under stress. Managing stress can have a significant impact on the outcome of a divorce in California, which makes it important to stay in control of your emotions and behave appropriately.
Avoid these divorce mistakes
Some of the main mistakes people make when they’re divorcing are rushing the process, refusing alternative dispute resolution and overlooking retirement accounts. The emotional energy involved in ending a relationship can create pressure to rush the process. Rushing divorce, though, can result in a division of assets that is unfair or imbalanced.
Alternative dispute resolution
A court’s time is expensive. The personnel involved and the formalities of the legal process can lead to large expenditures to move the divorce along. Mediation and arbitration are options available out of court that can save time and money for divorcing parties. The parties also generally have more control over the outcome in mediation or arbitration.
Assess retirement accounts
Retirement accounts are another important financial consideration. Depending on the length of the marriage, a divorcing couple’s retirement accounts could be their largest assets. If retirement accounts are an issue in the case, the parties will have to secure a qualified domestic relations order to assist the court in dividing retirement assets. The different types of retirement accounts and their varying tax treatments can complicate the division of retirement accounts.
Long-term child support considerations
Awards of child support are meant to cover the expenses of raising the children to adulthood. Some parents make the divorce mistake of considering only current daily or short-term expenses; they forget about future costs like medical, extracurricular and education expenses. This is another financial factor that calls for rationality and long-term thinking.