Outside of issues dealing with any children a Utah couple might have, money is often the central issue at the end of a marriage. Each party is struggling to ensure that he or she will not suffer financially after the divorce. Below are two financial mistakes that could derail any other efforts at a secure financial future.
There is no way to avoid at least some financial fallout since the parties are going from supporting one household to each supporting a separate one. However, taking certain actions could help minimize the impact that transition will have. First, the parties should look at any joint accounts they might have.
Separating any lines of credit such as credit cards can help avoid one party maxing out the account. Joint bank deposit accounts might need to be closed in order to avoid them being wiped out as well. If either party has a life insurance policy or retirement account that lists the other as the beneficiary, those designations might need to be changed in the absence of an agreement between the parties to leave them as they are.
If there is a marital home, each party should carefully consider whether it is financially feasible to keep it. A cost benefit analysis will need to be done to determine whether the party keeping the home will be able to make the mortgage loan payments, keep up with any maintenance and repairs and pay the taxes and insurance. It might be discovered that the convenience or sentimental value gained by not having to move is outweighed by the financial obligations doing so would require.
Other financial issues will need to be addressed, but these two are ones that often cause many Utah residents monetary problems after a divorce. When it comes to separating joint accounts, putting the direction to do so into a settlement agreement is not enough — follow through is crucial to avoiding further financial complications from these accounts. As for the family home, whatever decisions the parties make should work to help each of their financial futures instead of causing more harm.
Source: thefiscaltimes.com, “6 Money Mistakes to Avoid When You’re Getting a Divorce“, Kelli B. Grant, Aug. 26, 2016