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Category: Divorce

  • Is the 50% Divorce Rate a Myth?

    One statistic tossed around frequently is that 50% of all marriages end in divorce. The number varies a bit, but the gist is that roughly half of weddings have a corresponding divorce waiting.  As ubiquitous as this figure is, many just accept it as fact. But is the legend of the 50% divorce rate real or a myth?

    Has the Divorce Rate Ever Been 50%?

    So, has the divorce rate ever been 50%?

    Nope. Never was. Despite the fact that many hold this wisdom as truth, experts have debunked this figure multiple times over the years.

    But if the 50% divorce rate is a myth, the question remains, how did it get started? How did it become so widely agreed upon and acknowledged?

    50 percent divorce rate

    How The 50% Divorce Rate Myth Began

    It began in the Baby Boomer generation when people born in the post-World War II years began to marry and start families.

    In reality, the 50% divorce rate was never the reality. This number is based on projections from the 1970s that it eventually would get that high. But it never did.

    Projections held that if two percent of them continued to divorce each year, over the ensuing decades, the numbers would reach 50% or even higher.

    The number itself was never a static amount or representative of current marriages. The projections simply suggested it could get that high if this one trend continued.

    It’s information that was widely misinterpreted and misquoted. Over time, it was shared so often, with such an air of authority, we collectively stopped questioning it.

    The Divorce Rate Is Actually Dropping

    The divorce rate did spike in the 1970s and early ’80s, especially after no-fault divorce became the law in most states.

    Under these regulations, neither party has to prove the other is at fault to dissolve a marriage. Instead of blaming one another to determine who is responsible, the only qualifier is that if one party wants a divorce, they can divorce.

    Though there was an initial upswing in the dissolution of marriage, the divorce rate has declined steadily since.

    Leaving out unions where one spouse died, approximately 70% of marriages in the 1990s made it until their 15th anniversary. This is up from around 65% in the ‘70s and ‘80s.

    Moving into the 2000’s, the divorce rate was even lower.

    A number of factors contribute to the waning divorce rate:

    • People wait until later in life to marry and have children.
    • Long-term, non-marital relationships grew more common.
    • Cohabitation before marriage became more conventional.
    • Expectations of what marriage is and what people want and expect out of it changed.

    Unlike many previous generations, marriage isn’t a given.

    People aren’t in as great a hurry to get hitched and settle down, and many marriages are less rushed. These days, people often push off tying the knot and take their time to get it right.

    Essentially, if people are going to go through the effort of marriage, many want to make sure it sticks. And the divorce rate appears to reflect these trends.

    Related Reading: Breaking Down Rates Divorce By Generation

    Divorce Rate Statistics

    While the divorce rate, as a whole, has been in steady decline, that’s not consistent across every demographic and population.

    Factors like education level and race are big indicators of a potential divorce. The Washington Post published the following data based on a 2014 survey:

    Related Reading: Odd Divorce Laws From Around the World

    Education And Its Effect

    According to these numbers, 39% of men with a high school education or below will divorce in their lifetimes. The same is true of 37% of women.

    With a college education, the divorce rate drops substantially, to 28% for men and 29% for women. Those numbers hold fairly steady for advanced degrees, landing at 26% for men and 30% for women.

    Related Reading: Is January Really Divorce Month?

    Race And Divorce

    The divorce rate fluctuates wildly across racial boundaries:

    • 36% of white men and 38% of white women will dissolve a marriage.
    • Those numbers are slightly higher for Black men and women, who both clocked in at 42%.
    • Hispanic men and women are less likely to divorce, at 27% for men and 30% for women.
    • Members of Asian communities are least likely to divorce, with just 16% of men and 18% of women ending marriages.
    • Native American population is the most likely, with 44% of men and 45% of women ending a union.

    As you can tell, there are a ton of statistics floating around about divorce and the divorce rate. If you look hard enough, you can find numbers about how almost any factor you can think of impacts marriage and marital happiness.

    There are big ones like race, economics, and views on children. But there’s also data on cigarette consumption and what role your Facebook relationship status plays in the likelihood of divorce.

    While these statistics provide a broad-spectrum, big-picture look at the divorce rate, every individual situation is different. There’s a great deal of crossover from one group to the next.

    Just because you fit into one category or another, doesn’t mean your marriage is doomed. And just because it’s been said many times, doesn’t mean 50% of marriages end in divorce.

    Related Reading: Breaking Down Rates Divorce By Generation

  • Ways To Prepare For Divorce

    Divorce is a huge undertaking. Depending on the situation, it can be a long, in-depth process full of forms, hearings, meetings, and more. While no two cases are ever identical, and no single recommendations fit every situation, there various ways to prepare for divorce.

    Some of these are simple and may sound obvious. Others may be less intuitive. What they can do is make you as ready for what’s ahead as possible and hopefully provide some peace of mind.

    How Can I Prepare for Divorce?

    If you’re heading for divorce, there are steps you can take ahead of time to streamline the process and better prepare. Not an all-encompassing list by any means, but here are actions you can take to increase your chances for an optimal outcome.

    1) Educate Yourself

    Divorce laws vary a great deal depending on which state you live in. Perhaps the best advice out there is to familiarize yourself with the specifics of your home state. The more you know, the better prepared you’ll be.

    For example, Oregon is an equitable distribution state. This means property acquired during a marriage is viewed as belonging to the spouse who earned it. In a divorce, assets are divided in a fair and equitable manner between you and your ex.

    This is just one of many laws that may be different. Custody, spousal support, and other laws often differ from state to state. It benefits you and your case to learn the particular regulations where you live.

    Related Reading: Creating a Divorce Strategy

    2) Create A Plan For The Kids

    If there are children involved in your divorce, things become increasingly complicated. As this can be a long, contentious legal process, you want to create a plan to ensure they’re cared for. Examine your state’s rules and regulations governing child custody and child support.

    Your kids have the same needs and require the same care during and after a divorce as they did before. It may be in your and their best interest to prepare and implement a parenting plan during this time. The court also often implements temporary custody orders in these situations.

    If nothing else, knowing they will be adequately looked after is one less detail for you to stress about in an already stressful time.

    Related Reading: Can Criminal Charges Impact Child Custody?

    3) Set Aside Money For Your Divorce

    Divorce can be an expensive proposition. That probably doesn’t come as much of a surprise. At the very least, even in the most straightforward cases, there are fees for filing paperwork.

    Divorce attorneys and legal advice don’t come cheap. It’s all too easy to lose sight of the day-to-day expenses as you shell out a few dollars here and a few dollars there. And the more complicated the divorce, the more legal expenses you collect.

    Some examples of things you’ll have to pay for include:

      • Appearing in court.
      • Responding to motions.
      • Temporary child support.
      • Temporary spousal support.
      • Appraisals.
      • Mediators.

    One of the most important steps to prepare for divorce is setting money aside, whenever possible, to help cover unexpected costs.

    Related Reading: Common Financial Mistakes People Make in Divorce

    4) Get Organized

    Divorce is a complicated process, and the devil, as they say, is very much in the details.

    Over the course of dissolving your marriage, the court needs access to various documents. Information flows between you, your spouse, attorneys, judges, and more.

    You need to fill out forms, file claims, and respond to those filed against you. It’s possible you’ll face multiple appearances in court or with mediators.

    Your schedule can quickly become an intricate puzzle of places to be and hoops to jump through.

    Being organized throughout is a key part of preparing for your case. If everything is ordered and arranged, you won’t have to hunt for a particular form or stress out about when and where you have to appear.

    It may seem like a hassle at first, but being prepared is advice that will serve you well.

    Related Reading: Divorce Forms & Filing: What to Know

    5) Get Your Financial Records In Order

    An extension of being organized is to get your financial records in order. The division of property forms a significant chunk of the divorce settlement. This is where the court distributes all of the shared resources. As such, it has a huge impact on your financial future.

    You must disclose all of your assets and debts, and it helps to have all the appropriate documents ready to hand over. This saves time and hassle.

    Among other things, you should catalog:

      • All of your known bank accounts.
      • 401ks.
      • Pensions and retirement benefits.
      • Insurance policies.
      • Tax records for at least the past few years.

    List all of your debts including:

      • Car loans.
      • Mortgages.
      • Credit card balances.
      • Student loans.
      • Anywhere else you owe.

    Document all of your substantial assets like:

      • Cars.
      • Homes.
      • Real estate holdings.
      • Jewelry.
      • Furniture.
      • Any other big-ticket items.

    It may also prove helpful to break down your time, work, and financial contributions to the marriage. All of these things influence how the court divides property in your divorce. Being organized will only be a legal boon and be a key part of preparing for divorce.

    Related Reading: Ways to Save Money on Your Divorce

    6) Establish A Support System

    Divorce may be the most chaotic, stressful, and emotionally trying time of your life. Ending a marriage represents a titanic shift in your daily existence.

    You may well need backup if you’re going to make it through in one piece. Even if you don’t want to broadcast the sordid details of your case, it may be nice to have a support system in place.

    Knowing who to turn to and rely on is important. For emotional support, for financial support, and more. Instead of divorce or legal advice, maybe you just need someone to watch the kids while you meet with an attorney or appear in court.

    This can be family, friends, or legal professionals. You can also turn to one of the many groups designed to help or offer advice to people going through similar divorce situations. Simply knowing you’re not alone can be a welcome sensation.

    Related Reading: Should You Sell Your Home During Divorce?

    7) Create A Plan For After Divorce

    We’ve said it many times thus far, but divorce is a process. It is, however, one that ends. Stuck in the middle, it’s easy to become consumed and lose sight of what comes next.

    There’s nothing wrong with simply wanting to get this over and done with and move on. At the same time, it’s never too early to consider the next step.

    Think about what comes next.

    The whole point of divorce is to move forward. Sometimes it’s enough to move away from a negative situation. But what you’re heading toward is also important. Light at the end of the tunnel can be a huge motivating factor.

    Beyond that, you have a lot to consider. Your tax status changes, and you may have child or spousal support payments. Even paying all the bills from a single paycheck for the first time in years represents a huge change.

    You may want to create a budget to regulate your spending or seek financial and legal advice during your divorce.

    Getting divorced doesn’t automatically impact the financial agreements you and your spouse entered while married. If you don’t take steps to make sure these obligations are covered, it can negatively impact your credit.

    If you have children, custody arrangements and parenting plans also play into your post-marriage life. And all of this is just the beginning.

    Related Reading: Choosing Between Divorce and Legal Separation

    8)  Talk To An Attorney Early

    This post is vague and general and only provides a wider view of how to prepare for divorce. But if you enlist the services of an attorney to review your case, he or she can offer specific legal advice tailored to your situation.

    In most cases, the earlier you do this, the better.

    If you’re considering divorce, you may want to consult with an attorney well ahead of any legal action. Maybe even before you discuss the specifics with your spouse.

    It may seem like a good idea to talk to your spouse and come to an agreement on a settlement ahead of time. Many people believe that the best divorce advice is to negotiate as much as possible in advance and then consult an attorney to get the stamp of approval.

    But once you’ve agreed on things, it can be difficult to go back and change them, even if nothing is official. A lawyer may recognize and point out flaws or deficiencies you never considered. But you may encounter resistance in trying to alter your arrangement if your spouse believes you’re going back on the deal already in place.

    Perhaps the best advice about divorce, legal or otherwise, is to be prepared, whatever that looks like. Familiarize yourself with the process, know what forms and documents you need, and be as organized as possible.

    Knowing what you want and what you’re willing to give up will go a long way toward helping you achieve your ultimate goals.

    Related Reading: What is A Divorce Deposition?

  • How Substance Abuse Impacts Divorce

    Countless factors contribute to the end of a marriage. Every situation unfolds differently, but drugs and alcohol too often play into divorce. Hugely detrimental to relationships, the question remains of how substance abuse impacts divorce.

    Addiction to alcohol, prescription pills, illegal drugs, and more affects millions of people and often has a catastrophic effect on families. Beyond personal problems, substance abuse impacts divorce and the divorce process in many ways. Some are expected, others less so.

    Related Reading: What Is The UCCJA? A Look At How It Protects Children

    When Does Substance Abuse Affect Divorce?

    At this point, all 50 states, including Oregon, practice no-fault divorce. This means that to dissolve a marriage, there’s no requirement for blame. Neither spouse is “innocent” or “guilty” in the court’s eyes. All the law requires is one spouse to declare a marriage broken, without hope of repair.

    Basically, if you ask for a divorce, whatever the underlying reason, the court will grant it.

    At least as long as you’re legally married and follow the proper procedure. Aside from that, there’s no need to show a specific cause.

    What this means is that, though substance abuse may be at the root of your divorce, it’s not always as impactful to the process. At least in the mechanics. Instead of asking why, the court focuses more on the fact that you want a divorce.

    While the reasons don’t necessarily factor in the process, there are still places where substance abuse impacts divorce. Where and how greatly vary from situation to situation, but it often affects settlements, child custody, and more.

    Related Reading: Do Criminal Charges Affect Custody Cases?

    How Substance Abuse Affects Child Custody

    The court sets the best interests of any children above all other concerns when determining custody. And this is one key area where substance abuse impacts divorce in a big way.

    If there’s a pattern of behavior that shows drinking or drugs damage parental ability, it’s less likely that the court will award that parent custody.

    Things like casual drinking or, now that it’s legal, recreational marijuana use likely won’t move the meter much. Illegal drugs will probably have much more of an influence.

    Regardless of the substance in question, however, if it puts the kids in harm’s way, judges don’t look kindly on that.

    Multiple drunk driving arrests or disappearing and going on three-day benders, these things negatively affect custody hearings. They don’t paint a picture of a stable, responsible parent.

    Depending on the severity of the addiction, the court has a number of ways to proceed. If a judge thinks a child is at risk, they may require supervision for all visitation. Often, this is the other parent or even an outside professional.

    A judge may even deny any overnight visits. Courts also often require regular drug or alcohol screenings, and continued visitation may hinge on participation in a treatment program. It’s not uncommon for the court to require a parent to attend Alcoholics Anonymous meetings or go through similar programs.

    In general, the worse things are, the harsher the consequences.

    Serious cases may result in one parent getting sole custody and the addicted parent receiving no visitation at all. It’s even possible for a judge to terminate custodial rights completely.

    This is usually reserved for extreme circumstances, like if a parent injures the child or puts them at risk. But judges don’t want things to get that far, so they often proceed with caution.

    Related Reading: How Legal Marijuana Affects Custody

    What About the Division of Property?

    The division of property is a huge part of the process and is another spot where substance abuse can impact divorce. Courts don’t use splitting marital assets as a punishment, but excessive drug or alcohol use may still play a role depending on the situation.

    Substance abuse most often factors into the division of property when it directly impacts a couple’s finances.

    Did one spouse run up excessive bills on a joint credit card at the bar? Did they steal items to sell or trade for drugs? What if the blow through shared savings getting wasted?

    In all of these examples and more, substance abuse can impact divorce and property division.

    In these cases, the court may use this step to balance things out. It’s possible for a judge to award the wronged spouse a bigger piece of the couple’s shared to make up for this. It doesn’t always, but it happens more often in this type of situation.

    Related Reading: What Is A Status Quo Order?

    Can It Affect Spousal Support?

    Substance abuse can affect spousal support in much the same way it can impact the division of property.

    Again, the judge can award alimony if a spouse’s actions negatively impact a couple’s financial standing. If one spouse drains a joint bank account pursuing an addiction, the court may call for additional spousal support.

    If you worry about your spouse gutting your savings or racking up debts, taking steps to protect your finances may be in order.

    It’s possible to put money in separate bank accounts in only your name or to place valuable items in storage so they can’t be sold. Steps like this often help limit the potential financial fallout.

    Interestingly enough, when it comes to spousal support, substance abuse can also have an unexpected effect.

    It doesn’t happen often, but sometimes the court awards additional financial assistance to the addicted spouse.

    They may require help getting on their feet and finding treatment. This most commonly happens when this individual is earnest about reclaiming their life. Again, this is fairly rare, but it does happen.

    Coping with addiction is never easy, whether it’s your own or a loved one. Drugs and alcohol have ruined countless relationships. While it can be devastating on a personal level, substance abuse impacts divorce in a variety of ways.

    Related Reading: Writ Of Assistance, Divorce and Child Custody

  • How to Divorce in Oregon

    We often field questions about how to divorce in Oregon.

    Filing for divorce sounds like a harrowing, dramatic undertaking, and it usually gets complicated. Ending a marriage often becomes a long, intricate process.

    There are hearings, mediation, meetings with attorneys, arbitration, custody disputes, property division, and more. Then you have the divorce forms to contend with.

    How Do You Divorce In Oregon

    On a basic level, divorcing in Oregon isn’t nearly as complicated as many assume. It is a process to be sure, but the steps are relatively straightforward.

    Still, being as prepared as possible will only benefit your case. It never hurts to familiarize yourself with the stages before hand and know what lies ahead.

    With that in mind, here’s an overview of the process and a look at the divorce forms you may encounter.

    Fill Out The Divorce Forms

    Like with any process, there is a moment when it begins.

    In the case of divorce, that happens when one spouse completes and files the Petition for the Dissolution of Marriage. This is where the process truly begins.

    Five pages long, this form lays out all the pertinent facts about the case.

    Though the underlying reasons for ending your marriage are likely complicated, this first step is relatively simple.

    On this form, you provide all the pertinent information for you and your spouse. This includes:

    • Where you live.
    • The date of your marriage.
    • The length of your marriage.
    • Each party’s current living situation.

    You also answer other relevant questions. Depending on the situation, this includes information about:

    • Child custody/guardianship.
    • Child Support.
    • Spousal support.

    You must also disclose any shared assets and debts at this juncture.

    Related Reading: 9 Common Mediation Questions Answered

    Forms For Two Types Of Divorce

    In Oregon, there are two types of divorce. The appropriate type depends on the specifics and complexity of your case. This also impacts the forms you need to fill out and submit.

    Oregon is a no-fault divorce state, so there’s no need or space to assign blame for the end of the marriage. You don’t have to prove your ex was the problem, if you want to divorce, the state won’t stand in your way.

    SUMMARY DISSOLUTION

    Relatively simple, straightforward marriages often qualify for summary dissolution. This allows you to end your marriage without the cost and hold-up inherent in court hearings.

    Summary dissolution may be an option if:

      • You’ve been married for less than ten years.
      • There are no minor children or adult children still in high school.
      • You have little or no shared property to divide.
      • Personal property valued at less than $30,000.
      • Total joint debt comes to less than $15,000.
      • Both parties give up claims to spousal support.

    If you meet these conditions, you may qualify for a summary dissolution. There are specific forms to fill out if you go this route.

    Petition for Summary Dissolution of Marriage/Domestic Partnership
    Summons for Summary Dissolution
    Declaration Acceptance of Service
    Record of Dissolution of Marriage

    STANDARD DIVORCE

    If your case does not meet the summary dissolution requirement, you must follow a more traditional path to divorce in Oregon. What you need to file varies depending on the circumstances.

    Couples without children need to fill out the following forms:

    Acknowledgment About Dissolution
    Petition for the Dissolution of Marriage
    Petitioner’s Affidavit Supporting Judgment of Dissolution
    Affidavit/Acceptance of Service
    Record of Dissolution of Marriage

    Things are different when children are involved in the process. Custody disputes often become heated and contentious, and the divorce forms also vary.

    With minor children in play, in addition to the standard divorce forms, you must fill out others that lay out support payments, child custody, visitation, and more.

    Co-Petition Dissolution With Children

    File The Forms With The Court

    You must meet the state’s residency requirement to file for divorce in Oregon. It varies by state, but here you must live within its borders for at least 6 months.

    You can also file here if you moved away, but your spouse lives in Oregon. However, the petitioning spouse must submit a certificate of residency confirming that one of you still lives there.

    When it comes to which county to submit to, you have two choices.

    • You can file for divorce in the county in which you reside.
    • Or you opt for the county where your spouse lives.

    There’s no need to file in the county where you initially married. There is, of course, also a fee to file your divorce papers.

    Related Reading: Jurisdiction And Divorce: Where You File Matters

    Serve Your Spouse

    Once you file the appropriate forms with the appropriate court, the next step to divorce in Oregon is serving your spouse. This makes your intentions known. In most cases, this is accomplished by hiring an outside process server.

    However, if you enlist a divorce attorney, he or she generally also handles this step. In uncontested divorces, your spouse only needs to sign the Acceptance of Service to acknowledge delivery.

    When the non-filing spouse signs the Acceptance of Service form, this states that they received the papers. After service, it’s the petitioner’s responsibility to submit the signed acceptance to the court. The case can’t move forward until your spouse has all the paperwork in hand.

    Just like there is a Petition for the Dissolution of Marriage, there is also a Response to the Petition for the Dissolution of Marriage. If the person served—also known as the respondent—doesn’t agree with all of the requests on the Petition, that individual then files a response. This document lists all objections and any counterrequests.

    Related Reading: How Is A Business Divided In A Divorce?

    Complete Financial Disclosures

    In Oregon, the courts require both parties to hand over complete financial disclosures.

    This means each must provide a comprehensive list of all assets and all debts. Failure to follow these rules may result in substantial fines and other monetary penalties.

    When it comes to property division, Oregon is an equitable distribution state. Where community property states view all assets and debts accumulated during a marriage as the equal property of both spouses, equitable distribution considers it as belonging to whoever acquired it.

    No specific formula exists for dividing property, but the court does its best to split any shared assets or obligations in a fair and equitable fashion.

    Related Reading: How Is Debt Divided In Divorce?

    Sign And File

    By this point, you’ve accomplished filing for divorce. Which is really just the start. Now you have to go through the divorce process.

    In uncontested divorces, things can and often do proceed smoothly. Under ideal circumstances, when both sides agree on the issues, it involves little more than signing and filing a handful of forms.

    Signing and filing the final documents is precisely what it sounds like. There are forms to fill out regarding property division, child custody, support, visitation, and other specifics of your case.

    Once both sides reach a final agreement, the court examines the paperwork. If everything is in order, the judge signs off and your divorce becomes official.

    In contested divorces, things become more difficult.

    As friction increases, so do the complications. You often have to sit down and go through mediation or arbitration to reach an agreement. If neither of those strategies works, you may be destined to go to trial, and the court will decide for you.

    All of these additional hurdles add time, stress, and money to the divorce process.

    You may want to retain counsel, especially if things get heated and contentious. An experienced divorce attorney guides you through the legal system toward an optimal outcome.

    Related Reading: Is January Really Divorce Month?

    Finalizing Divorce in Oregon

    As they lay out the concrete terms of your split, these final documents are some of the most vital divorce forms.

    At the top of this list is the General Judgement of Dissolution. Why is this so important? This is the big boss, be-all end-all of your divorce in Oregon.

    This spells out all of the terms and agreements in explicit detail. Child custody, child support, spousal support, debt division, and all the other issues you’ve fought for through the process.

    A judge signs the General Judgement, and you and your spouse are legally bound. Because of that, it’s critical to ensure this document is prepared correctly, that everything agreed upon appears in writing, and that there are no errors. If you ever have questions in the future, refer to this document first.

    Related Reading: Should I File for Divorce First?

    Troubleshooting the Divorce Forms

    • Make sure that you have the most current versions of the appropriate divorce forms.
    • Fill them out clearly and completely — take your time, use your best penmanship.
    • Sign the divorce forms in the appropriate places.
    • Double-check that they are complete and keep copies for your personal records.

    Divorce has such a huge impact on your life that it’s vital to take the time to make sure you do everything right.

    Related Reading: Divorce or Legal Separation: Similarities and Differences

  • Do I Need a Prenuptial Agreement?

    When most of us think of a prenuptial agreement, we think of wealthy couples with more money than we can ever dream of. We’re talking about celebrities, rock stars, professional athletes, titans of industry, and Hollywood A-listers. After all, those folks have tons of assets to protect.

    So prenups are just for the super-rich, right? Though a common perception, that’s not necessarily the case. At some point before saying, “I do,” you should ask yourself, “Do I need a prenuptial agreement?”

    Granted, most of us don’t have mansions, multiple estates, or a fleet of exotic cars, but what we do have is important.

    Losing part of a pension or 401(k) is a significant blow to our retirement plans. Thousands of dollars to buy an ex out of a mortgage on a home is tough to come by. You worked hard to build your business and don’t want to give even part of it away. And our cars may not be Bentleys, but they’re not exactly cheap either.

    While the stigma is that a prenuptial agreement is just for marriages where one spouse has a great deal of wealth, that’s not always the case. Even if you’re by no means rich, a prenup still serves to protect what you have in the event of divorce.

    No one wants to bet against a marriage, and prenups have a reputation as being a sign of hesitation or uncertainty. However, if you want to make sure to cover yourself in the event things work out, or if you have specific assets you want to safeguard, it may be the smart strategy.

    Related Reading: Breaking Down Divorce by Generation

    WHAT IS A PRENUPTIAL AGREEMENT?

    Technically speaking, a prenuptial agreement is a contract a couple enters into before marriage. It stipulates ahead of time how property will be divided in the case of divorce.

    Though there aren’t any specific requirements of what a prenup must contain, many couples use a what’s-mine-stays-mine, what’s-yours-stays-yours approach. This way, each party leaves the marriage with what they brought to the table.

    The concept of a prenuptial agreement is simple, but like most legal matters, it’s usually much more complex in practice.

    Topics covered in prenups vary wildly. Beyond the division of property, some people try to include provisions for child custody, spousal support, or even clauses regarding infidelity.

    Many of these inclusions, however, aren’t legally enforceable and the court may toss them out.

    For instance, stipulations in a prenuptial agreement regarding spousal support are generally allowed. However, if there are problems with the document, or the terms skew too drastically in one direction, a judge can dismiss them.

    On the other hand, things like child custody and child support in a prenuptial agreement are not generally enforceable.

    While a couple may try to get ahead of any potential issues in this area, the court has the final say. If the terms of a prenup are reasonable and truly represent the best interests of the child, the final judgment may look like what was put down on paper, but ultimately it’s up to the judge.

    Related Reading: Is Oregon a Community Property State?

    DO I NEED A LAWYER FOR A PRENUP?

    Like with so many legal matters these days, there are a variety of online forms and templates and do-it-yourself resources available to help draft a prenuptial agreement.

    At the same time, these tend to be complicated, detailed documents that require a specific format. They must address many areas across both marriage and divorce.

    Unless a prenuptial agreement is carefully and accurately constructed, it may not stand up in court. Sure, you save a few dollars in the short term by doing it yourself, but if it fails to protect your assets, you waste a great deal of time and money.

    Because of this, it’s probably a good idea to work with a lawyer or at least have one take a look at the paperwork. An attorney will help create a prenup that’s more likely to hold up under scrutiny and carry substantial legal weight.

    Related Reading: How Student Loan Debt Affects Divorce

    SO, DO I NEED A PRENUPTIAL AGREEMENT?

    Ultimately, the question is whether or not you need a prenuptial agreement. This depends on multiple factors, like what you have to protect, if your spouse is open to the idea, and many others.

    Every situation is different, so there’s no one-size-fits-all answer. But there’s a lot to consider.

    Many people think of prenuptial agreements as a pessimistic move or that you’re dooming your marriage to fail. Others think they’re only necessary for wealthy individuals with fat bank accounts. But depending on your circumstances, it may provide an extra layer of security. You hope you’ll never need it, but if you do, you’ll be happy you took the steps.

    You can also use one preemptively to do things like shield an anticipated inheritance. If one spouse earns substantially more, it can limit future support payments. When your spouse has significant debts, a prenup may protect you from becoming liable for those. One can also safeguard a business in the event of divorce.

    Related Reading: How to Protect Your Business in the Case of Divorce

    ARE THERE OTHER STRATEGIES TO PROTECT ASSETS?

    Instead of using a prenuptial agreement, some people try other means to protect themselves.

    One common strategy is to keep certain assets or accounts in one name or the other. This can work, but it doesn’t protect you financially in every situation.

    For example, if you already own a house, you may keep it in your name alone after the wedding. But in Oregon, the state considers any appreciation that happens during a marriage shared property, regardless of whose name appears on the title. If your home increases in value, that additional sum becomes joint property. As such, it may be divisible if you split.

    Despite the negative stigma attached, there are many valid reasons to consider a prenuptial agreement. If the goal is to protect your interests and assets in the case of divorce, it’s certainly worth consideration.

    If you’re getting married, congratulations. And if you have questions about whether you need a prenuptial agreement, feel free to contact Goldberg Jones at our Portland office.

    Related Reading: Prenuptial Agreements: Not Just for the Super-Rich

  • Creating a Divorce Strategy

    Divorce often looms on the horizon for quite some time before a couple finally pulls the trigger. In many cases, people are emotionally prepared for the process by the time they file the documents. But being emotionally prepared and being ready in a practical sense are two different things. Ending a marriage is a tricky proposition, and creating a divorce strategy ahead of time often helps people through the process.

    How To Create A Divorce Strategy

    You have many things to consider when creating a divorce strategy. Each situation is unique, so not everything applies equally across the board. Your choices depend on many factors: length of the marriage, whether or not you have children, employment status, and various needs. Among countless other considerations.

    That said, here are common steps to consider when creating a divorce strategy.

    1. Prepare Ahead Of Time

    In most cases, divorce doesn’t come as a shock. As we said, people often consider it for a long time—and they should, it’s a life-changing decision. But this also provides the advantage of being able to prepare. Take steps to set up a divorce strategy ahead of time.

    Meet with an attorney, start saving money, and figure out exactly what you want and need from a divorce settlement. You can even make plans for when the deal is done.

    Related Reading:  A Guide to Getting Divorced In Oregon

    2. Know The Laws In Your State

    Laws regulating divorce vary a great deal from one state to the next. There’s no excuse for not knowing them.

    In fact, not being aware of the rules in play can cost you when it comes to child custody, spousal support, and other areas.

    For example, Oregon is an equitable distribution state as opposed to our neighbors, Washington and California, which follow community property statutes.

    This impacts how the court divides assets and debts when it comes to the divorce settlement. As such, it can have a substantial and lasting impact. This is just one example of how laws differ from state to state. Custody, child support, and other areas have different regulations depending on where you live.

    Related Reading: What is Equitable Distribution?

    3. Get Your Finances In Order

    Divorce often costs quite a bit of money, which probably doesn’t come as a surprise. Whether we’re talking about a simple, do-it-yourself split or an epic knock-down-drag-out courtroom trial, there are expenses every step of the way. Even just filing the initial paperwork comes with a fee.

    Every appearance, hearing, and motion adds additional expenses. It’s even more if you hire an attorney. Part of creating a divorce strategy should include saving money so you don’t get blindsided when fees pop up.

    Related Reading: How Is Debt Divided?

    4. Organize

    Are you good at juggling things and keeping details straight? Good, you’ll need to be as you navigate divorce. It’s like lobbing a hand grenade into your schedule.

    You have appearances to make, meetings with your attorney, mediation appointments, and all kinds of places to be.

    There are forms to fill out, documents to share and collect, assets to divide, and more. It may initially seem like a headache to keep everything straight, but being as organized as possible is a key step in creating a divorce strategy. It only benefits you and your case.

    Related Reading: Mistakes Men Make In Divorce

    5. Gather Financial Records

    Piggybacking on the last step, one of the most important places to organize is your financial records.

    Splitting up assets and debts has a huge impact on your economic footing moving forward. As such, it behooves you to prepare. During this stage, you need to disclose all of your assets.

    This includes:

    • Bank accounts.
    • Pensions.
    • 401(K)s.
    • Property.

    You must also list all of your debts like:

    • Mortgages,
    • Car payments
    • Student loans.
    • Credit card balances.

    Know as much as possible about your collective financial state. For example:

    • How much do you make?
    • How much does your spouse earn?
    • What property is in each of your names?

    Understanding your finances is a significant part of creating a divorce strategy.

    Related Reading: Ways to Save Money on Your Divorce

    6. Create A Divorce Strategy For The Kids

    Divorce is tough on everyone, but it’s especially important to look after the most vulnerable participants: your children.

    Emotions run high when a case involves kids and people don’t always think straight.

    Learn about child custody laws in Oregon. Find out how the state calculates child support and dig into topics like visitation and parenting plans.

    The legal stuff, however, only forms part of it.

    You have a lot going on, but so do they. Children need support during the process. They require child care and someone looking after them, just like any other time.

    Additionally, there are added pressures and emotions to deal with. It’s vital to keep an eye on them and what they need and to let them know they’re loved even in this stressful time. Maybe that’s checking in regularly, but maybe it requires something more significant.

    Related Reading: Calculating Child Support

    7. Safeguard Your Credit

    During a marriage, you and your spouse enter into all kinds of joint financial arrangements. You share credit cards, sign for car loans, and put your names on mortgages.

    Divorce doesn’t automatically change any of these agreements, which is important to know as it can impact your credit.

    Divorce settlements often detail which spouse remains responsible for which debts. They usually contain provisions that your ex must make certain payments or even refinance a loan to remove your name.

    That’s great if it happens, but if it doesn’t, you may take the hit.

    It hurts your credit, and in some cases, if your name stays still on a bill, creditors will come after you to collect. Part of creating a divorce strategy should entail keeping an eye on your credit.

    Related Reading: Can You Make Major Purchases During a Divorce?

    8. Create A Support Network

    During what can be a chaotic, emotional, trying time, it’s important to look after your mental health.

    Having a support system in place is a substantial part of this. Know who has your back, where to turn to for both legal and personal advice, and even financial help.

    You may need someone to watch the kids while you’re in mediation. Or maybe you just need a friend to have a beer with and remember what normal feels like.

    Friends, family, loved ones, and even support groups are often vital in divorce. Taking care of yourself is essential.

    Related Reading: Should You File for Divorce First?

    9. Hire A Divorce Lawyer

    There are more resources available for DIY divorce than ever before. In reality, you can end a marriage with little more effort than downloading, filling out, and filing the appropriate forms.

    But it doesn’t take much for the dissolution of marriage to get complicated. Even if you don’t wind up hiring a divorce attorney, consider exploring your options.

    This is especially true if your spouse has representation. An experienced attorney helps create a divorce strategy and guides you through the process. Sometimes you need a skilled pro in your corner.

    Related Reading: DIY Divorce in Oregon

    10. Plan For The Future

    Creating a divorce strategy isn’t always just about the divorce. Caught in the middle, it’s all too easy to get lost in the day-to-day fight.

    But divorce is about more than right now, it’s about the future. Don’t lose sight of that, even if all you want is to get through and put this behind you.

    There are practical concerns, like changes in tax status, child custody and support, and finding a new place to live to consider. You need to address all of that, of course. But don’t forget to take the time to look at the positive and to consider the ways your life will improve.

    Even if it’s not much, dedicate a little time to thinking about and exploring the possibilities. It can do wonders for your frame of mind.

    Ending a marriage represents a titanic shift. Ideally, divorce is a move in a positive direction, but that doesn’t mean the process isn’t chaotic and stressful. There’s conflict to attend to, forms to file, bills to pay, and unexpected twists and turns.

    Creating a divorce strategy ahead of time often helps smooth out the process. You’ll surely still encounter some unexpected bumps, but preparation can keep them to a minimum and help you deal with them when they do pop up.

    Related Reading: Should I Move Out During Divorce?

  • Should You Sell Your Home During Divorce?

    For most of us, a house is the biggest purchase we ever make. It’s a huge commitment in money, time, resources, and emotions. Because it’s the most valuable thing we own, it often becomes a big issue in ending a marriage. The question frequently arises of whether or not to sell your home during a divorce, so we will dig into that topic for a while.

    Should You Sell Your Home During Divorce?

    Many reasons exist to hold onto a house. Some are emotional. You put a lot of time and energy into the home and feel a deep connection. That’s often difficult to leg to go of. Others are practical. For instance, it helps maintain continuity for the kids. You may view it as an investment, especially with current real estate prices.

    Whatever your circumstances, eventually, the question will come up of whether or not to sell your home during a divorce.

    This situation generally plays out in one of three ways:

    • First, one party buys out the other and keeps the house. That’s fairly straightforward, but it also takes money.
    • Second, if there are children, the custodial parent stays in the home, usually until the youngest child turns 18, and then they sell the house.
    • Third, the couple sells the house immediately and divides the profits.

    Cases, of course, vary a great deal from one to another. No two are alike. You have several questions to answer when deciding whether or not to sell your home during the divorce process.

    Related Reading: How Is Property Divided In Divorce In Oregon?

    Factors to Consider When Deciding to Sell Your Home

    While far from exhaustive, these are a few questions you should ask in this situation.

    What’s The Market Like?

    One consideration that impacts whether to sell your home during a divorce is the market. Real estate prices fluctuate and vary from one location to the next, by time of year, and more. Sometimes it’s hot, other times it’s cool.

      • Do you live in a buyer’s or seller’s market?
      • Can you get market value?
      • Will you bring in more than you owe on the mortgage?

    All of these are important questions to ask. You may or may not be able to sell your house in the first place. Even if you can, the process takes time.

    Beyond that, you may not be able to get the price you want.

    In many other cases, homeowners rush to unload a house as fast as possible for unfavorable prices. You don’t want to sell your home during divorce and take a loss if you can avoid it.

    Related Reading: When Do You Need a Divorce Lawyer?

    Are You Better Off With Other Assets?

    Because a house is such a big piece of the financial puzzle, it’s easy to focus on that. It’s not the only piece, however.

    In some cases, you may be better off letting it go in favor of taking other assets in the settlement.

    Getting the house seems like a big victory, but it also raises other issues. You have to maintain it, pay property taxes, and more.

    If you ultimately decide to sell it down the road you face capital gains taxes if the property increases in value. And by focusing on one big thing, you may miss out on other financially or emotionally valuable assets.

    Related Reading: How to File for Divorce in Oregon

    What Are The Benefits Of Selling?

    When deciding whether or not to sell your home during divorce, it’s important to do a quick cost-benefit analysis. In short, do the benefits outweigh the costs? Consider what you gain by keeping or selling the house.

    Divorcing couples often want to make a clean break. Unloading a shared home, one with lots of emotional baggage certainly accomplishes this.

    You also free yourself from a major financial burden. You may sell your home during divorce and make a tidy profit in the right circumstances. That helps offset some of the other costs or even helps start your new life on the right foot.

    Related Reading: Common Financial Mistakes That Impact Divorce Proceedings

    Do You Want To Live There?

    A good question to ask before you sell your home during divorce or not is whether you even want to live there.

    Lay out your reasons and determine if you really want the house or not.

    Do you want the house simply to keep it from your soon-to-be-ex? Is the house too big for you? It’s important to be honest with yourself. It may be best to break ties and sell your home during the divorce and start over somewhere new.

    There are plenty of legitimate reasons to want to stay in a residence. Maybe it’s your dream house or the only place you’ve ever felt truly at home. If it’s where you raised your kids, maybe you’re not ready to let those good memories go yet. Some people just hate moving.

    But again, whatever the circumstances, it’s important to be aware of the whys.

    Related Reading: Why Moving Out During Divorce Can Be A Big Mistake

    Can You Afford to Keep the House?

    Maintaining a house is expensive. With all of the financial changes you go through while ending a marriage, you have to consider whether or not you can realistically afford the cost.

    Your tax status shifts and you may have child or spousal support payments. Those are all new monetary obligations. Add to that, you may have to pay the mortgage, property taxes, and bills from a single income for the first time.

    As much as you want to remain, your financial situation may dictate otherwise. Once you examine the harsh economic realities, you may be better of if you move on.

    It’s often difficult to let go and sell a home during divorce, but it’s also often the best choice. Don’t think of it as an end but as a beginning. Now you have the opportunity to start fresh and make new memories.

    You can find a house that better fits your needs, move to a neighborhood where you’ve always wanted to live, or relax knowing there aren’t painful recollections lurking in every corner.

    However it plays out, whether you sell or don’t, you have some big questions to answer.

    Related Reading: What are the Grounds for Divorce in Oregon?

  • Divorce and Depression: The Impact on Men

    Did you expect a sense of relief once you finally finalized your divorce? Did you anticipate an overwhelming wave of elation and well-being once you signed the divorce papers? Perhaps you did, but that initial relief often fades and depression sets in.

    That’s a natural expectation. After all, you’ve been waiting for this moment, building up to this for some time. But what about when that euphoria fades? Or if it never comes at all? You might think you’ll get back to normal, but that doesn’t always happen.

    Divorce is often one of the most stressful events you’ll ever experience. It throws your entire life into upheaval in one go. It’s common for men to experience bouts of post-divorce depression.

    Everyone faces these risks, both men and women. But one Canadian study found while that’s true, men often face a greater risk of depression after divorce. Researchers examined the data from the National Population Health Survey to look at the role divorce plays in depression.

    Depression After Divorce

    According to the report:

    “Men aged 20 to 64 who had divorced or separated were six times more likely to report an episode of depression than were men who remained married.”

    Many factors play a part in this increase in depression. No two situations are identical, so what leads to issues in one case may not in another. And since no two people react the same way to similar hurdles, responses vary. Still, many common recurring themes pop up.

    There’s the strain that comes with drastic change and uncertainty. Even if divorce is the right choice and you know that in your heart of hearts, it’s scary and unsettling.

    Financial issues often factor into this. You may have to pay all the bills from a single paycheck for the first time in years. And if you have spousal maintenance or child support payments, that causes additional burdens.

    Many people reported the loss of social support impacted depression. If people pick sides, divorce often ruins friendships and other relationships. You divide assets in divorce, but many couples also essentially wind up dividing friends. It’s common to feel you are alone and don’t have anyone to turn to.

    Custody changes also often popped up when people discussed divorce and depression. It’s difficult going from seeing your children every day to a few times a week or a month or even less. You may not be as directly involved in their lives and decision-making, which can lead to a lost sense of purpose for a parent.

    How much, if at all, these factors impact mental health after divorce varies from person to person. They might destroy one while barely registering for another. Still, they’re common causes men cite as reasons for depression after ending a marriage.

    Related Reading: Common Mistakes Men Make in Divorce

    It Gets Better

    While divorce leads to elevated risks of depression in men following divorce, the research does offer a ray of hope.

    Though instances of depression may rise, the study indicates it does get better.

    After examining the data, the researchers found that the risk is greatest within the first two years. That makes sense. After all, it’s fresh and new and you’re dealing with many unknowns. But they also found that most people “were no longer depressed four years after the break-up.”

    That’s not to say there’s a magic date where things instantly improve for everyone. But as the saying goes, “Time heals all wounds.”

    The more distance you have from the event, the more likely you are to deal with things, put them behind you, and move forward. And isn’t that what divorce is for? To get out of a bad situation and move on to something better?

    Related Reading: Truly Scary Divorce Facts

    Take Care of Yourself

    If you have post-divorce depression, it’s imperative you seek help. You can turn to family and friends or talk to a mental health professional.

    While there’s no substitute for professional help, there are a few things you can do to cope with the symptoms of post-divorce depression:

    Find an Outlet

    Finding a hobby or pastime to focus your time and energy on can be a positive way to distract your mind. It gives you something else on which to concentrate. From reading a book to learning to tie fly fishing lures, anything that keeps your mind and your hands engaged helps funnel your energy into something positive. Sometimes that can be enough.

    Get Organized

    You know how frustrating it is to not be able to find something when you need it. Reduce your stress by organizing. Taking the time to sort through your belongings helps bring some order to your life.

    This is especially helpful if things seem chaotic post-divorce. It’s nice to be able to have control over something in your life when you may feel you don’t in certain areas.

    Set aside time each day to declutter your living space—but remember you don’t have to do it all at once. Small steps are often more effective than one massive organizational effort. Trying to take on too much can have the opposite effect and increase your stress.

    Focus on Positive Relationships

    A football team can’t win if the quarterback is the only one on the field. Just like the quarterback, you need the help of loyal and dependable teammates. Having friends and family on your team is essential—and don’t forget to enlist the help of a few expert coaches.

    People like counselors and therapists can provide the guidance you need to get you back to your A-game. Another area to find like-minded people is support groups. Think of support groups like spring training or training camp. An opportunity to work with people in similar situations can help you improve your skills and remind you you’re not alone.

    Depression can be a challenging topic. Many men have difficulty discussing or even acknowledging their feelings. Depression also increases your risk of other health issues.

    In the wake of divorce, it’s important to take care of both your physical and mental health. But you don’t have to struggle alone. Recruit supportive people for your team, find an outlet for your energy, and start on the road to a healthier, happier life.

    Other Reading: Breaking Down Divorce Rates By Generation

  • How Abandonment Impacts Divorce in Oregon

    People divorce for countless reasons and each case has an individual story. Sometimes it takes the form of a gradual breakdown, other times, spouses separate well ahead of the actual divorce. And occasionally, one party simply up and leaves. This is where abandonment becomes a factor.

    What Constitutes Abandonment In Oregon?

    Most people probably think of abandonment as physical desertion, as one spouse taking off and not coming back. That certainly plays a part but doesn’t show the whole picture.

    Merely leaving for a while—for example, a week, or even a month, after an intense fight—doesn’t automatically constitute abandonment. Neither does a month of missed child support here or there.

    In order for the court to consider this situation abandonment or desertion, it must continue for an extended period of time. The absence must also be permanent and without the consent of the other spouse.

    Many elements must also be present in the situation to constitute abandonment.

    Most states require an absence of at least a year and it can’t be a mutually agreed upon decision. During that time, the absent spouse must fail to pay support. Additionally, the remaining spouse must not have caused the departure—for instance, fleeing from physical abuse doesn’t count.

    Related Reading: What are the Grounds for Divorce in Oregon?

    Abandonment And No-Fault Divorce

    Oregon is a no-fault divorce state. This means that to dissolve a marriage, there’s no need for one spouse to assign blame or to prove the other was in the wrong.

    All that needs to happen is for one spouse to proclaim the marriage irretrievably broken and that no hope for reconciliation exists. You’ll get your divorce if you meet the residency requirements and follow the proper procedure.

    While abandonment may ultimately be the root cause of a divorce, it may not end up the cause, legally speaking. In Oregon, the only basis for divorce is “irreconcilable differences.”

    Some states require a couple to live apart for a specific amount of time to grant a no-fault divorce, but that’s not the case in Oregon.

    Though abandonment doesn’t wind up the reason written down on your divorce decree, it does still have a significant impact. Especially when it comes to child custody and divorce settlements.

    Related Reading: Can You Get Divorced If You Can’t Find Your Spouse?

    Can Abandonment Affect Child Custody?

    Leaving children behind doesn’t put one in contention for parent of the year. When one spouse physically abandons children, leaving them in the care of the other parent, it creates a situation where the remaining parent has custody by default.

    While not an official, permanent custody order, this scenario often results in court-sanctioned guardianship.

    In cases of abandonment, it’s hard to show a strong, stable bond between parent and child. During a prolonged absence, the de facto custodial parent can also seek divorce and attempt to gain sole custody.

    In certain instances, the court may even terminate a parent’s rights in the cases of abandonment. If a parent avoids contact with the children or refuses to pay child support, rights may be cut off.

    Again, a missed month of payments here and there or a week’s absence won’t do the trick. This must be a prolonged, definite pattern.

    Ending a parent’s rights is a serious, not to mention a permanent decision. The courts don’t take such rulings lightly, and you must prove it’s in the best interest of the children.

    Related Reading: How to Prepare for Your Initial Divorce Consultation

    Abandonment And Divorce Settlements

    Similar to child custody, abandonment can also significantly impact divorce settlements. The real influence of prolonged desertion often manifests in areas like child support, spousal support, and similar realms.

    Abandonment and similar issues don’t usually play into areas like the division of property. Other factors take precedence, like financial need, child custody, the length of the marriage, future job prospects, and other considerations that lead to financial hardships.

    Though on the surface the idea of abandonment appears straightforward, it often serves to further complicate matters in divorce. It impacts and influences the process in many ways and further muddies the already cloudy legal waters.

    Related Reading: How to File for Divorce in Oregon

  • Common Financial Mistakes in Divorce

    Divorce has a massive impact on your life in every way. In a relatively short span, your living situation, relationship status, and parenting time all undergo titanic shifts. One of the most overlooked consequences is the monetary impact of dissolving your marriage. There are many common, yet easily avoidable financial mistakes people make in divorce.

    Common Divorce Mistakes That Can Affect Your Finances

    A significant part of the divorce process is the division of property, where the two sides split up the shared assets and debts acquired throughout the marriage.

    Below are a few financial mistakes in divorce that can cost you dearly in divorce. You may want to take steps to avoid these pitfalls. With focus and attention, you should be able to sidestep these problems.

    Agreeing To Anything To Rush Through The Process

    Since long-term economic stability often hangs in the balance, it’s important not to rush into anything. Divorce is an emotional time and some people want to get it over with ASAP. Far too often, this leads people to make hasty, rash decisions without taking the time to consider the consequences.

    Just getting it done may seem great in the short run, but it often leads to substantial financial mistakes. In the rush to finalize your divorce, you often give up more than you have to.

    While it may appear fine at the moment, people commonly come to regret reckless decisions. On the other side, if you don’t take the time to account for what is available and what you need moving forward, people frequently leave things on the table the court may otherwise award them.

    Related Reading: How To File For Divorce In Oregon

    Acting Out Of Spite Or Anger

    Wanting to be finished with a divorce often leads to rash decision-making. So, too, does acting out of a sense of anger or bitterness. Hurt feelings are natural and often part of the process. They also cloud judgment and lead to choices that aren’t in your best financial interest.

    Some people try to use divorce as a means of punishment or retribution. While that may be cathartic at the moment, it may not be smart logistically speaking.

    Engaging in an epic, scorched-earth divorce gets expensive. And with both sides drawing money from the same well, people often wind up costing themselves more money in the long run. This is one of the biggest financial mistakes we see people make.

    Related Reading: How Is A Business Divided In A Divorce?

    Not Knowing the Value Of An Item

    Some pieces of the financial puzzle are easy to put a price tag on. Look at a shared bank account or loan debt. It’s plain to see just how much it’s worth.

    These are also readily accessible assets. For other items, however, the picture isn’t quite so clear.

    A car or a house, for example, presents complications. While these may have value on paper, you may not always be able to sell them for that figure.

    These items may also be difficult to liquidate. Selling a house is also a lengthy process. If you must sell quickly, you’ll probably take in less money.

    It also happens that parties overvalue items due to an emotional connection. We all form attachments to certain possessions, placing added worth on something that may not have much real-world basis.

    In these situations, you risk spending a great deal of time arguing back and forth about objects of relatively minor value in the grand scheme. People often focus on these items and less on those with a greater financial impact.

    Related Reading: How Is Property Divided In Oregon?

    Trying To Hide Assets

    As we said, a major part of the divorce process is the division of property. disclosing all assetsThis is where the court divides the shared assets and debts according to Oregon’s equitable distribution model. But the court only distributes what it knows about.

    Ideally, you have enough trust and honesty that you and your spouse will be upfront when it comes to disclosing resources. Also, the law requires both sides to disclose all their property.

    This, however, doesn’t always happen.

    Some people go to great lengths to hide things from their spouses. They attempt to conceal certain valuables or even transfer property or money to a third party.

    In a high-asset divorce, it’s even more tempting to try this, but it’s best to avoid underhanded strategies. Unless you’re remarkably devious and clever, you will be found out.

    Judges and opposing counsel have seen it all before, and you face significant consequences if you get caught. Your credibility takes a huge shot, and these actions may place you at a disadvantage for the remainder of your case.

    If you think your spouse may be hiding assets, there are ways to search for these clandestine holdings.

    • Check recent tax returns for inconsistencies.
    • Examine bank accounts for large expenditures you didn’t know about.
    • Use brokerage statements to look at the purchase and sale of stocks and bonds.

    These are just a few places to investigate, but you want to be as thorough as possible.

    If you have questions about whether or not your spouse disclosed everything, you may want to enlist the help of an experienced professional to help dig. Missing the signs or letting things slide is a common financial mistake in divorce settlements.

    Related Reading: How Is Debt Divided In Divorce?

    Forgetting About Your Taxes

    You have many details to consider during the division of property.
    credit rating after divorce With everything else to account for, taxes often go overlooked. The potential impact is huge and can have far-reaching consequences.

    The most obvious factor is that your filing status changes after divorce, but there are others

    In general, divorce is a non-taxable transaction if handled correctly. It’s possible to disburse money from a 401(k), 403(b), or deferred compensation plan without incurring any negative tax effect.

    With some retirement plans, such as a 401(k), the recipient spouse is often able to cash out the funds without paying penalties. If disbursed improperly, cashouts can be costly.

    Other assets you receive also often carry additional tax burdens.

    One example of this is when assets are subject to capital gains. This occurs when you sell something for more than you paid for it—that profit is often taxable.

    Capital gains most commonly apply to real estate, stocks, and investments.

    But the same regulations don’t apply uniformly to every asset. For instance, the federal government taxes the sale of a primary residence differently depending on the gain.

    Before agreeing to any settlement in a divorce, high-asset or otherwise, it’s important to know the tax implications of everything on the table.

    Related Reading: Millenials, Boomers, And Gen X-ers Oh My: Breaking Down Divorce Rates By Generation

    Not Considering Credit

    Another factor that often flies under the radar is how divorce impacts your credit rating.

    After finalizing the split, your former spouse’s credit ceases to influence yours. You both apply for loans and credit cards as individuals from here on out. That part is straightforward.

    However, if there are remaining shared debts, they can still influence your credit score, even after the fact.

    Getting a divorce doesn’t alter pre-existing agreements you and your spouse entered into while married. If you secured a car loan, mortgage, or accrued significant credit card debt in both names, you remain on the hook for those payments.

    The court may assign your ex to pay a joint debt like this. Ideally, that’s what will happen. But if it doesn’t go down that way, it will negatively impact you and your standing like any other late or missed payment.

    The final agreement can include provisions like requiring your former spouse to refinance a loan and remove your name by a certain point. But we all know people don’t always do what they’re supposed to. It never hurts to keep an eye on your credit score and double-check.

    Related Reading: 5 Ways Divorce Impacts Social Security

    Hiring The Wrong Lawyer

    Many people try to hire the toughest, meanest lawyer they can find. Having a strong advocate to fight for you is definitely important, but enlisting a rabid bulldog of an attorney doesn’t always mean you hired the right one.

    When it comes to your financial future, an attorney with experience in similar cases is more important than someone who wants a legal fistfight. Consider what you have to protect, what you want from a settlement, and what you need in the future.

    An appropriately aggressive attorney with an understanding of these elements will likely prove much more effective and practical than a legal brawler.

    Divorce dramatically alters your finances. Take the time to consider the repercussions of your choices during the process. You want to start the next chapter of your life on the best economic footing possible.

    The greater the pool of assets to divide, the more complicated and heated things become. Too often people make financial mistakes that start their new lives in a hole.

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