Pennsylvania couples in the midst of ending their marriage may not always be making their financial futures a top priority. However, the emotions common in many divorces can end up leading to financial mistakes that have long-lasting consequences for one or both parties involved. A lack of understanding of the household finances, a lack of legal or financial advice and the tendency to make emotional agreements without formal documentation can all complicate the divorce process.
It is common for one party in a marriage to manage the household finances, leaving the other in the dark when it comes to important information such as general household assets, 401(k) plans and IRAs. A forensic accountant may provide guidance in such cases, combing through tax information and other documents to provide a clear picture of the assets available for division.
Spouses who do not have a good financial adviser or legal team may find the divorce process more complicated than it has to be. High asset divorces may benefit from a three- or four-person team that can devote significant time to the case. While couples need separate legal teams, they can often use the same financial adviser throughout the divorce without any fear of a conflict of interest. Couples may also make the mistake of agreeing to things in an emotional moment without putting the agreement in writing. It is difficult to prove what was agreed to at a later date if the agreement is not made a part of the divorce decree.
Those who are going through a divorce may often benefit from consultation with a family law attorney. An attorney may be able to help navigate such complicating factors as child support and custody. Legal counsel is often especially helpful when dividing real estate holdings, business assets and other complex financial assets that often accompany a high net worth divorce.
