According to experts, married couples have an estimated 39% chance of getting divorced in the United States. Unfortunately, divorce can be devastating both financially and emotionally. Here is a glimpse at seven mistakes that can quickly impact one's finances during a Pennsylvania divorce.
First, it is wise to avoid cashing in investments to cover some of the costs that arise during divorce proceedings. Cashing in investments may certainly sound tempting, but selling assets that have significantly appreciated in value can create a substantial tax obligation. In addition, because these assets will not be invested any longer, the person who sold them will likely pull him or herself off track from achieving bigger financial goals.
Second, it may behoove divorcing individuals to give up the family home. The marital home might certainly carry a high value and be beautiful, but it may also be costly to maintain. Further, the home mortgage may be difficult to cover with only one person's salary following the divorce. On top of this, sometimes the marital home ends up being worth a lot less than the amount of money owed on it; in other words, the house has negative equity.
The divorce process can understandably be overwhelming and confusing when it comes to tackling financial issues. However, an experienced family law attorney in Pennsylvania can guide a divorcing individual through matters like property division and alimony. The attorney's ultimate goal is to ensure that the client's best interests are protected in both the short and long term.