Most Common Financial Mistakes Made During Divorce

December 30, 2021

Most Common Financial Mistakes Made During Divorce

Did you know that over the past 5 years there has been about 750,000 + divorces per year? That breaks down to an average of about 2,000 a day or 85 per HOUR. 


Divorce
isn’t new, and it happens every single day. If you find yourself in a situation where separation happens, and you are filing for divorce you should be prepared and understand everything that is about to happen. 


Divorces are not alway amicable and even when they are there are a lot of pieces to the puzzle when separating. 


When you are aware of the process and understand what to do, you not only give yourself a realistic idea of what is about to happen, you can also save money and save yourself from financial ruin.


Here at Kilgo Law, we want you to be prepared. In our last article we discussed “
3 questions to ask a divorce attorney in Alabama,” to bring insight and education into what you need to do when deciding to get a divorce. 


For this article, we’ve curated a few of the most common financial mistakes made during divorce. 


Emotional Financial Decisions


At times, when people get divorced there are a lot of emotions and choices are made as a result of anger and hurt. This can cause people to make irrational decisions that end up hurting them in the end. Irrational financial decisions during separation can be, buying a new car, going on a spending spree, draining the funds in your joint account and more. 


Even though you may want to “blow it all” and spend you
r money, this is not the wise decision. It will end up costing you in the long run. 


Instead of spending, ensure that all your expenses and incomes are in line and that you have access to a separate bank account while your joint account is paused during the proceedings. 


Not Knowing Your Own Financial Information


Once you get married people tend to just put all their income into one joint account and let expenses come out from there. It can be easy to forget what expenses will occur when you are on your own. 


When it is decided that separation is happening, go through YOUR expenses and incomes. Here are a few things to account for when it comes to expenses:


  • Phone bill
  • Rent (if moving out)
  • Car payment
  • Insurances
  • Health and Car
  • Daily living expenses
  • Gas
  • Food
  • Emergency savings 
  • Lawyer fees


If you have children you will need to factor in the cost of daycare/babysitting, health insurances, and other factors. 


There are other items that may come up as expenses but ensure that you can take care of the necessities FIRST. Gym memberships and other unnecessary expenses should be put on pause until you have a solid budget set and are able to handle these expenses. 


It’s important to
budget and not get yourself into debt, especially if you know that your divorce is going to be more difficult and complex. 


Choosing the Wrong Attorney


We spoke about this in the last article, but it is crucial to choose an experienced and knowledgeable attorney who specializes in divorce. 


If you go with an attorney that someone recommended because they helped them with their car accident, it could cost you big time. 


All attorneys are different and there are different industries a lawyer can specialize in. You want to choose a divorce attorney because they understand how the process works and know the laws. 


They know how to best help you in your indivisible situation and can get you the best outcome for you and your family during the divorce. 


If you choose an attorney that isn’t aware of everything you
 might gain or lose during the process, you can be spending more money and going through an even longer divorce if you have to change attorneys part way through. 


Ask the right questions and hire one that is going to be there to support, advocate and educate you on best practices during the divorce. 


Avoid These Financial Mistakes Made During Divorce - Choose Kilgo Law


If you are in need of a divorce attorney in the Cullman, Alabama area, connect with us today. Don’t make these common financial mistakes made during divorce. 


We are experienced attorneys who specialize in divorce and offer
same day consultations. To learn more about Kilgo Law and how we can help you navigate the divorce process, browse our website and schedule your consultation. 


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Many people find a car essential today, particularly individuals who do not live in urban areas. Public transportation may be unreliable, and men and women must get to work, school, medical appointments, and more. In addition, the ability to drive is a sign that a person is free. They can choose to go wherever their heart desires at a moment’s notice. They aren’t relying on someone else to take them where they want or need to go. Driving is not a right, however. It is a privilege granted by the state where the individual lives and this privilege can be revoked in certain situations. The person named on the driver’s license agrees to obey all traffic laws and drive safely on all roads. The state retains the right to suspend or revoke the license when they don't. Men and women should consult a criminal defense attorney if they lose their license following a DUI charge to navigate the process of restoring the license. Driver’s License Suspensions  The state may suspend a driver’s license for several reasons. A driver with several traffic tickets might find the state takes away their ability to operate a motor vehicle, as it is responsible for keeping other drivers on the road safe. When a person fails to appear in court after being ordered to do so, the state may suspend their driver’s license. It might also take a person’s license if they own back child support to encourage the delinquent parent to catch up on their financial obligation. Driving under the influence will also lead to the suspension of a person’s license. Driving Under the Influence A person driving under the influence of drugs or alcohol will have their license suspended, and that is only one of several penalties they face. When charged with this crime, a person immediately loses driving privileges. Law enforcement has either tested this individual and found their blood alcohol content was at or above the state legal limit or the driver refused chemical testing. The driver must turn their license over when they are charged. They may have the license returned until they appear before a judge, and the judge may suspend the license again for a longer period. Implied Consent Many drivers believe they can refuse chemical and field sobriety tests to avoid losing their licenses. That is not the case. When they receive their driver's license, they agree to undergo chemical testing for drug or alcohol use. This testing may include blood tests, urine analyses, breath tests, or a Breathalyzer. When a driver refuses one or more of these tests, the law enforcement officer may arrest them and require them to undergo testing. Refusing these tests subjects the driver to harsher penalties. The refusal may lead to the driver losing their license for 90 days or being required to have an ignition interlock device installed on their vehicle. Prosecutors may also bring up this refusal in court as evidence of the driver’s impairment. Restoring Driving Privileges Once a License Has Been Suspended Drivers must know how to have their license restored once it has been suspended. They must first confirm that the license has been suspended rather than revoked. When the license has been revoked, the driver must go through all steps required to restore their driving privileges just as they would if the license were suspended. However, they must also retake their driving tests before getting their license back. Administrative license suspensions often come shortly after a DUI arrest. They differ from a license suspension related to criminal charges, such as a DUI conviction. To restore a license following an administrative suspension, the driver can request a hearing where they contest the suspension. During this hearing, the law enforcement officer who handled the arrest will share evidence of why they stopped the driver and what they found during the traffic stop. The driver then mounts a defense, and the hearing officer rules. If the hearing officer upholds the suspension, the driver must abide by all court orders and pay all fines and fees before the suspension period ends. The fines, fees, and court orders vary by the suspension type. DUI Suspensions Before restoring a person’s license when they have been convicted of a DUI, Alabama requires the driver to complete a substance abuse treatment program. The state currently has over 25 court referral programs for drivers, and each program has court referral officers and juvenile instructors. The driver might be required to sit through presentations about substance abuse and how drugs and alcohol affect their driving. The court might also have them participate in an inpatient or outpatient substance abuse treatment program. Level One treatment involves a 12-hour presentation about substance abuse laws and how different substances affect a person’s driving ability. Courts only offer this level for individuals who don’t have an identified substance use disorder. If the court presumes or determines a person has a substance use disorder, it will order the individual into Level Two treatment. The driver participates in a program that lasts at least 24 hours. The student must interact and take an active part in the treatment. This treatment program covers everything from Level One and delves further into substance abuse patterns and available support systems. Self-help meetings make up a portion of Level Two treatment programs. Level Three treatment programs include a mental health evaluation. The student is also referred for treatment in an approved substance abuse program, which may be either inpatient or intensive outpatient. Anyone 21 and under charged with DUI is considered an at-risk youth. They must take part in a 12-hour presentation. The presentation covers topics such as coping skills and conflict resolution. In addition, the youth will learn more about alcohol and drug abuse laws. Restoring the License Taking part in a treatment program is one step in restoring the license. The driver must also pay any fines associated with the suspension and obtain SR-22 insurance. The state may issue a restricted or hardship license for those needing a license to continue working or attending school. This license allows the individual to drive under certain conditions, such as when they have medical or treatment appointments to attend. Before issuing this restricted license, the court will require the driver to install an ignition interlock device on their vehicle. How Long Will the Suspension Last? Administrative suspensions may last as little as 90 days or up to three years. First-time offenders will have their licenses suspended for 90 days, second-time offenders will lose their licenses for one year, and third-time offenders lose them for three years, according to FindLaw.com. If they obtain a restricted license, it may be used for essential travel only in Alabama. Fines and Penalties Assessed with Suspended Licenses Any driver whose license has been suspended must pay a $275 reinstatement fee. There is also an additional $25 drug-related fee and a $150 interlock issuance fee. Additional fees may also be charged, and the driver might need to pay an attorney to fight the suspension. Fees are typically lower when the suspension is from something other than driving under the influence. Contact a criminal defense attorney for more information on restoring a suspended license. No two cases are identical, and the attorney can guide the person through this restoration. With their help, a person can navigate this process and get their license back at the first opportunity.