Will a Divorce Ruin Your Finances?

Divorce is hard. You may have heard some horror stories about divorce—including that it can seriously damage your finances. Here is the reality: A divorce is a major financial risk, but it does not have to destroy your finances. A proactive approach is key. In this article, our Monroe divorce lawyers highlight key things you should know about protecting your finances during a divorce in North Carolina.

Five Financial Risks of Divorce (And How to Prepare for Them)

1. Waste of Abuse By Your Spouse
Unfortunately, in some cases, a spouse may recklessly spend or even intentionally waste marital assets. Sadly, this can adversely impact the overall financial pool available for division. To mitigate this, keep a close eye on joint accounts and credit reports. Document any unusual transactions. The best approach is to stop waste, fraud, or abuse before it happens. If dissipation of assets has already occurred, a North Carolina divorce lawyer can help you determine the right approach.

2. Hidden Assets By Your Spouse
In North Carolina, spouses have a duty to make general financial disclosures during the divorce process. Nonetheless, a common issue in divorces is the concealment of assets by one party. To combat this, conduct a thorough financial discovery. This involves collecting all financial documents, such as tax returns, bank statements, and investment accounts.

3. An Unfair Property Distribution Arrangement
You need your fair share of the marital property. Remember, equitable does not always mean equal. North Carolina is an equitable property division state. A top-tier divorce lawyer can review your situation and help you secure your full and proper safe of the marital property. Make sure that all of your property is taken into consideration—from real estate to personal property to bank accounts to retirement accounts.

4. Higher Future Costs than Your are Prepared for
Post-divorce life may come with expenses you hadn’t anticipated, such as higher living costs or single-income challenges. To prepare, create a post-divorce budget. Factor in potential changes like housing, childcare, and insurance. For parents of young children going through a divorce, it is imperative that your child support case is fully resolved during the process. Unpaid child support—or being overcharged child support—is a significant risk.

5. A Long Battle that Runs Up Your Legal Fees
Finally, lengthy legal battles can be financially draining. To minimize this, it is generally a best practice aim for an amicable settlement. Indeed, most divorces in North Carolina are uncontested divorces. Open communication, negotiation, and mediation can significantly reduce legal fees and expedite the process. Still, you should always be prepared to protect your rights and interests.

Contact a Monroe, NC Divorce Attorney for a Confidential Consultation

There is a lot riding on a demand letter in a personal injury case. At its best, the letter can move your claim towards a full and fair settlement offer. At its worst, a sloppy demand letter could inadvertently undermine your case. It is crucial that a demand letter is always drafted by an experienced personal injury attorney in North Carolina. Here are four of the most important elements of a personal injury demand letter: