Common Mistakes to Avoid

Common financial mistakes to avoid when going through a divorce include:

1. Not communicating with your spouse.

2. Not understanding 72(t)(2)(c) section of the tax code regarding retirement plans.

3. Not understanding, or making mistakes on Qualified Domestic Relations Orders, thus losing critical retirement benefit rights when retirement funds are divided.

4. Excessive front loading of maintenance can mean a loss of tax deduction.

5. Not understanding the tax link between child support and maintenance which can mean loss of tax deduction if the IRS believes you have claimed payments to be alimony instead of child support.

6. Not obtaining life insurance to cover maintenance and child support obligations.

7. Not considering the tax basis in property.

8. Paying tax on interest on property settlements.

9. Not getting credit for carry forwards on tax returns.

10. Not understanding the complexities of military and government pensions.

For more information on these topics, see the articles page.