Dividing your assets and liabilities when you divorce is stressful, and it is not uncommon for people to wind up doing or saying things they wouldn’t normally do or say. Unfortunately, these things can derail negotiations or result in consequences that last long after the finalization of the split, so it is crucial to avoid certain mistakes.
Concealing or misrepresenting finances
People can feel tempted to hide money or property to shield it from the property division process. However, this is illegal and can trigger expensive penalties.
Thus, when disclosing your assets and liabilities, be as accurate and thorough as possible. You can work with financial and legal professionals to help you cover your bases.
Accepting less than you deserve
When it comes to negotiating, some people don’t know what they are entitled to and what they deserve. Further, because divorce is such an emotional process, people might consider accepting a less-than-fair settlement because they feel guilty, sad or ashamed. And in some cases, people feel intimidated or bullied into getting less than they should.
However, you should know that most people divide their assets and debts equally in a divorce. If you or your soon-to-be-ex wishes to deviate from this, there should be legitimate reasons for doing so.
Making unrealistic demands, fighting for property you cannot realistically afford to keep or refusing to give up anything can trigger costly setbacks and obstacles. You could wind up derailing other negotiations by refusing to act reasonably, which could ultimately mean going to court for decisions. This can be a costly and lengthy process that most people would prefer to avoid.
Making uninformed decisions
You must divide your property following the Family Property Act. If you are not familiar with the details of this act, then you could wind up making decisions that courts cannot enforce or approve.
Rather than acting out of emotion or basing your decisions on anecdotal information from friends or the media, you can talk to your lawyer about your options and the laws in place regarding property division.
Avoiding these mistakes can get you through the property division process more easily with less contention and fewer legal setbacks.