Divorce - 6 Financial mistakes that you should avoid

When you're served with a complaint for divorce, it'll create problems both financially as well as mentally. People are confused after receiving the complaint and don't know what to do. Thus, they commit certain financial mistakes which can later on cause further problems for them. Check out some of the common financial mistakes that you should avoid during divorce:

• Do not try to hide marital assets: Once you receive the Complaint for Divorce, you will be subject to an Automatic Restraining Order. Under this order, your spouse and you are barred from selling, disposing or hiding your marital assets. Thus, do not try to transfer the money from a joint account to your separate account. You will also not be able to hide the car or cash in the stocks. However, you can definitely use your separate account for all your regular expenses.

• Do not be emotional about your property: When you receive the complaint for divorce, it is true that you'll be emotionally shattered. But it's of no use being emotional. Rather you will have decide as to who can afford the property. If you feel that your spouse will be better off handling the property and the mortgage, then let him/her have it. You may even check out if selling the property will be a better option. If there is a profit from the sale of the property, then it'll be divided amongst both of you.

• Don't let your spouse decide everything regarding finance: You should take initiative and take your own decisions regarding finances. Gather the financial records such as tax returns, insurance papers, brokerage account statements, retirement account details, bank statements, stock statements, etc. While you visit your divorce attorney, he/she would require these documents.

• Do not forget to split the joint accounts: Start taking steps to split your assets and finances. If you've joint credit cards, you need to split them or else, you may find that your ex- spouse, a year later, have spent the maximum limit on them. Thus, a "clean break" is quite essential in case of divorce.

• Do not overlook to change your beneficiary on the 401(K), IRA, insurance etc: Once your divorce is complete, roll over your retirement accounts into your IRA. Make sure to change the beneficiaries on your retirement accounts, insurance etc. It is better to do it immediately rather than leaving it for the future.

• Don't be over-confident that you know everything: If you don't have the property knowledge, you won't be able to safeguard your interests. Professional help is available and it will be better if you contact attorneys, CPAs as well as financial advisors in this regard. They will guide you to deal with the situation in a better way.