Just as a married couple's finances may become a source of conflict and confusion during their marriage, it can become a problem for them if they decide to part ways. Unfortunately, if a spouse makes money-related mistakes during divorce mediation or the litigation process, they can have long-term negative effects. Here is a glimpse at a couple of mistakes that can be especially costly in Pennsylvania.
The first mistake is failing to gather all essential paperwork at the start of the divorce proceeding. This paperwork includes a Social Security statement for each spouse hat details the individual's income record and thus what the benefits may be in the future. Other relevant documents to collect include home remodeling receipts as well as documentation of the value of a home and another significant marital assets. It also makes sense to record bank and other financial account numbers along with their balances.
Another mistake is not considering the tax implications of various decisions made during divorce. Retirement accounts, property and investments with similar monetary values may trigger very different tax outcomes in the years ahead. This may impact the net value of these assets, something that is important to consider during negotiations.
An attorney in Pennsylvania can help those going through divorce to make informed financial decisions when navigating divorce mediation or traditional divorce litigation. These decisions include which property to give up or keep, and how to handle alimony. The attorney's aim during these types of family law proceedings is to ensure that a divorcing spouse's rights are protected in the Keystone State.