Divorce can be a complicated and emotionally taxing process, especially if you are unfamiliar with the specific laws and regulations in your state. In Nevada, certain pitfalls can lead to costly consequences if not navigated carefully. Here are three of the most common and expensive mistakes people make during divorce proceedings and tips on avoiding them.
1. Failing to Disclose Assets
One of the biggest mistakes is failing to disclose all assets during the divorce process. This might be due to oversight or a deliberate attempt to hide assets, but it can lead to severe legal repercussions. In Nevada, both parties are legally obligated to provide full financial disclosure. Undisclosed assets that are later discovered can result in penalties and affect the final settlement.
Tip to Avoid This: To avoid this mistake, ensure you provide a comprehensive list of all assets, including bank accounts, properties, investments, and personal valuables. Consulting with a financial advisor can also help ensure nothing is overlooked.
What to Do If You Suspect Hidden Assets
If you suspect your spouse is not disclosing all assets, act promptly. Hiring a forensic accountant can help uncover hidden assets by thoroughly investigating financial records. Additionally, informing your attorney about your concerns ensures that the necessary legal steps are taken to request full financial disclosure and protect your interests during the settlement process.
2. Ignoring Tax Implications
Another costly mistake is ignoring the tax implications of your divorce settlement. Certain assets may come with tax liabilities that could significantly alter their value. For instance, taking over the family home might seem advantageous, but the associated property taxes and potential capital gains taxes should be considered when thinking about your long-term financial obligations.
Tip to Avoid This: Work with a tax professional or financial planner to evaluate the tax implications of any asset division settlement. Doing so can provide clarity and help you make informed decisions that align with your financial interests.
What to Do If You Think a Proposed Property Division Settlement is Too Disadvantageous Tax-Wise for You
If you believe the proposed property division settlement imposes an undue tax burden, it's crucial to consult your attorney to explore alternative options. With the help of your attorney, you may be able to negotiate a more equitable distribution that minimizes your tax liabilities.
3. Not Having an Attorney Represent You
Although hiring an attorney is not required in Nevada, failing to have legal representation can make you vulnerable to making uninformed decisions that could have long-lasting consequences. An experienced divorce attorney understands the intricacies of Nevada divorce law and can protect your rights during the process.
Not having an attorney can open you up to risks such as:
- Accepting an unfair division of marital property, resulting in financial hardship.
- Agreeing to unrealistic or unsustainable spousal support terms.
- Overlooking custody arrangements that do not serve the best interests of your children.
Tip to Avoid This: Even if you believe your divorce will be amicable, consulting a qualified attorney should be a priority. Remember, a skilled divorce attorney, like ours at Ford & Friedman, has the benefit of professional education and experience that you and your soon-to-be ex-spouse do not. They can use their knowledge to provide guidance on legal matters, assist in negotiations, and represent your best interests in proceedings.
Are you considering divorcing? Reach out to Ford & Friedman to schedule a consultation with one of our attorneys. We are always here to help.