Oversharing isn’t the only mistake people make when their marriages are ending.
If you’re getting a divorce, it pays to keep quiet on social media, said New York divorce attorney Jacqueline Newman. Trashing a soon-to-be ex or boasting about your great new life can complicate divorce negotiations.
These documents may help not only with the divorce settlement but with future retirement and tax planning, Stolz said. For example, someone who was married for at least 10 years may be able to claim spousal or survivor benefits from Social Security based on an ex’s earnings record.
Homes can be particularly problematic, especially in high-cost areas. A married couple can exclude up to $500,000 of home sale profit from their taxes, but a single person can avoid tax on only $250,000. Couples need to consider the future, after-tax value of assets during their negotiations, Longo said.
Mediation or collaborative divorce can save people money compared with traditional divorce proceedings, Newman said. Mediation, an alternative dispute resolution process, may not involve lawyers and relies on a neutral third party to help devise an agreement. With a collaborative divorce, each spouse is represented by an attorney trained in the collaborative process of negotiating deals that are fair to both parties.
With a traditional divorce, people may dig in their heels and have to turn to a judge — sometimes repeatedly — to decide issues as they’re negotiating an agreement. Avoiding that adversarial process as much as possible can make a lot of financial sense, Newman said.
“I tell my clients, ‘You’re going to settle eventually anyway. The only question is how long it will take and how much you’ll pay me,’” she said.