Fair Divorce Settlements in Nashville
Do you have a fair divorce settlement?
You may think so but, I see 3 common mistakes in settlements. The first mistake is you don't know what to ask for because you don't really know what you need. The mistake here is not understanding your monthly living expenses.
A thorough list of monthly expenses should have about 140 items. If you don't have this many items listed, you are forgetting things and will underestimate your expenses. This translates into, you accepting an offer that will not meet your needs.
The second mistake is forgetting about inflation. Financial planners are currently using a 3% inflation rate. Forget to incorporate inflation and you'll underestimate your expenses and what you need long-term. This is especially important if you will be receiving alimony over several years. Judges won't allow for alimony to increase with inflation. You'll need to negotiate this during settlement discussions.
The third mistake is forgetting about taxes. Does your monthly expense worksheet include a line item for the taxes you'll pay on alimony? Did your attorney explain the tax implications of you keeping the house vs. the retirement fund? What about the taxes you'll pay when you liquidate investment accounts?
A divorce settlement you thought was fair may not be if you have overlooked important financial issues like those listed above. While these are the most common divorce settlement mistakes I see in my Nashville and Brentwood offices, there are many others and this blog is not the best venue to address them. If you are in the midst of divorce, I encourage you to take your time and really understand all of the numbers and divorce finances before you accept a settlement. Education is the best way to secure your future.