No person can be fully prepared for a divorce, however, there are measures a spouse can take in order to avoid financial mistakes when it comes to a divorce settlement. There are a number of financial mistakes that are made in a divorce settlement therefore divorcing parties can work at avoiding such mistakes. This article will discuss some of the most common financial mistakes made in divorce settlement.

Becoming a financial victim - one of the biggest mistakes any divorcing spouse can make is to be in the dark when it comes to finances. If during your marriage one spouse always handled all the financial decisions in your household and you had no information about you and your spouse’s income and assets, your spouse will have an unfair advantage over you when it comes to settling the financial issues in your divorce. ‘If you suspect that your spouse is planning a divorce it is important that you gather as much information as you can about your finances. Make copies of important financial records such as account statements and all of the data that relates to your marital lifestyle’. For example, savings, brokerage, checking accounts, tax returns, etc. If you believe that your spouse may liquidate assets or retitle marital assets without your consent it is important that you notify the holder of the asset or property in writing and get a restraining order from the court. You can receive advice from a divorce lawyer in respect of experts that you can hire, for example legal and forensic accounting experts.

Mediation – a lawyer from the Bluetown Law Firm stated that, “if parties to a divorce can work together to reach a fair settlement on most or all the issues in their divorce it would be wise for them to choose mediation in order to resolve their divorce case, this will save them thousands of dollars in legal fees and emotional aggravation”. The lawyer further stated that, “the process of mediation involves a third-party mediator, who is neutral, who meets with the divorcing couple and helps them reach an agreement on the issues in their divorce. It is important to note that the mediator is not a judge nor does he or she insist on a particular outcome or agreement, instead he or she works towards a mutual agreement for parties to the divorce”. However, the lawyer also stated that mediation is not appropriate for all couples, especially for those who are unwilling to compromise, hide assets or income from the other spouse or where communication is strained.

Failure to produce an accurate budget - divorcing spouses in most cases fail to give an accurate estimate of living expenses when they produce their initial budget for temporary alimony. As a result of underestimating their living expenses, they find that they are not able to cover all their bills. It is advised that divorcing spouses use a financial professional to help them produce an accurate and complete budget.

For advice on the divorce procedures and tips speak to the best divorce lawyer in Toronto to make sure that your rights are fully protected.

About the company:

The Bluetown Law Firm is a law firm of renowned professionals who specialize in family law in respect of divorce. For an uncontested divorce in Ontario, seek out a lawyer from the Bluetown Law Firm.