The Pitfalls of DIY Divorce

By Sarah J. Jacobs, Household Legislation Legal professional
When dealing with a divorce, one of many first vital choices you’ll possible make is learn how to navigate the authorized course of. With so many different choices and issues concerning the future, dealing with the divorce by yourself – going the DIY route – would possibly look like the only and most cost-effective resolution.
As divorce attorneys, we get the enchantment. It’s straightforward to think about that doing your individual divorce will prevent cash and make it easier to management the end result of your divorce. It’s a standard mindset for divorcing {couples} who consider their scenario is easy and easy.
The divorce course of will not be all the time so simple as it seems at first look, although. Earlier than committing to doing the whole lot your self, there are some widespread pitfalls of DIY divorce you ought to be conscious of.
4 Widespread Pitfalls of DIY Divorce
The next are among the challenges you’re prone to encounter should you determine to proceed with out a lawyer.
1. Not realizing how difficult divorce might be
Divorce legal guidelines differ from state to state, and even counties throughout the identical state can have totally different divorce necessities. What’s extra, every divorce is exclusive and what would possibly apply to at least one set of circumstances may not apply to a different. The truth is, even skilled divorce legal professionals will inform you that no two divorces are the identical. It will depend on the circumstances which are particular to your case as to how the regulation will apply to you.
Other than authorized complexities, there are monetary points that might want to think about. For those who don’t have an entire image of the marital property, this could result in an unfair division of belongings and money owed, particularly if there are hidden belongings or undisclosed money owed. This will additionally affect assist agreements, which may trigger monetary hardships sooner or later.
The suitable divorce legal professional will look out to your pursuits and clarify your choices – from hiring a forensic accountant to serving to you provide you with a monetary plan that matches your targets.
2. Not understanding authorized processes, paperwork necessities, and timelines
Able to brush up on divorce regulation? For those who’re DIY-ing your divorce, you’ll want to know not solely substantive authorized rulings together with case regulation and statutes, but in addition processes and timelines for steps like:
- Early asset disclosure. Some states require each events to share details about belongings and money owed firstly of divorce proceedings.
- Obligatory monetary affidavits. In some states, each events should submit internet price statements of belongings and liabilities and sources of earnings.
- Ongoing disclosure. It is not uncommon (and in some instances necessary) that any new belongings or money owed which are incurred throughout the divorce course of have to be disclosed to the court docket.
For those who aren’t intimately aware of the steps required to navigate a divorce to conclusion – like these listed above – your divorce can turn into difficult shortly.
What’s extra, divorce proceedings have paperwork necessities and strict submitting deadlines. Paperwork have to be stuffed out with meticulous consideration to element (together with issues like web page limits, font necessities and generally variety of traces on a web page)—should you fail to dot your i’s and cross your t’s, your divorce might get delayed, or in some instances, dismissed.
It’s additionally vital to fulfill court docket deadlines, as there are penalties for lacking a deadline. For example, lacking the deadline for submitting your monetary affidavit may end up in court docket fines or a delay within the divorce course of.
You additionally must preserve monitor of court docket appearances while you determine to deal with your individual divorce. For example, should you fail to seem in court docket for a listening to or a trial, the court docket can enter a default judgment in opposition to you. This implies the court docket might grant the opposite social gathering the whole lot they request with out you even getting an opportunity to current your facet of the story.
This consideration to element is one thing that the appropriate legal professional ought to deliver to the desk—they’ll work diligently to make sure all of your paperwork are accomplished in keeping with court docket guidelines.
3. Forgetting to consider taxes
Divorce and taxes are an particularly advanced mixture, opening up events to new obligations, surprising submitting eventualities, and (much more) irritating paperwork. With out considerate authorized recommendation and technique, complimented by acceptable tax and monetary recommendation from these professionals, you can make one of many many widespread missteps, resembling:
- Inaccurately filed deductions and exemptions. It’s usually unclear who ought to declare mortgage curiosity and charitable contributions.
- Improperly dividing property and belongings. The division of belongings can set off capital features tax and have an effect on the tax foundation, which may have surprising monetary results.
- Overlooking retirement accounts. 401(okay)s, IRAs, and pensions are beneficial marital belongings which are usually divided in a divorce. A Certified Home Relations Order (QDRO) is required for these belongings to be correctly transferred with out incurring tax penalties or distribution limitations. The phrases of your settlement settlement can affect the distribution of those funds which may have lengthy vary tax penalties.
- Misunderstanding alimony tax remedy and baby tax credit. The tax implications of assist funds and which guardian will get to assert the kid on their taxes has modified, particularly because the Tax Cuts and Jobs Act of 2017 (TCJA).
Earlier than 2018, alimony funds had been allowed as a tax deduction for the payor and the recipient needed to embrace it in his or her gross earnings. From January 1, 2019 onward, alimony funds should not tax deductible for the payor and should not thought of earnings for the recipient for federal tax functions. The tax affect on the state stage differs from one state to the opposite.
The TCJA additionally eradicated dependent exemptions for federal taxes. Previous to the passage of the regulation, many divorce agreements included provisions outlining which guardian might declare the exemption. Some parts of the TCHA are set to run out, so it’s essential to understand how this is able to have an effect on your scenario.
A household regulation legal professional can assist just be sure you are assembly the tax legal guidelines throughout your divorce.
4. Surprising prices and extra stress
Whereas the expense of hiring a divorce legal professional would possibly look like lots, it’s a small value to pay in comparison with the doubtless pricey pitfalls of DIY divorce. Right here’s how a DIY divorce can value you.
Extra bills – Submitting errors, resembling lacking data on the paperwork, could cause delays within the course of. This may end up in further court docket charges and even having to file once more. Since you’re not a authorized skilled, it’s straightforward to make authorized errors that may negate any preliminary financial savings of a DIY divorce.
An unfair divorce settlement – Omission of essential monetary data can result in an unfair settlement. And a poorly worded settlement may end up in ongoing disputes in future, particularly the place the phrases of the settlement should not properly outlined or are ambiguous. Sadly, this may end up in having to return to court docket to resolve the problems, which comes at further authorized value.
Larger emotional prices – Don’t ignore the emotional penalties of doing your individual divorce. Attempting to cope with all the authorized issues concurrently making an attempt to work and maintain different obligations might be overwhelming. This further load can improve your stress and make it troublesome to make good choices.
An skilled divorce legal professional is your strongest advocate all through the divorce course of. They’ll information you thru the authorized system, defend your rights, and make it easier to attain a good settlement settlement. With an legal professional by your facet, you may keep away from the pitfalls of DIY divorce, scale back your stress, and start to plan to your future.
Sarah Jacobs is a Divorce Legal professional and mediator in Morristown, New Jersey who has been representing and defending the rights of her purchasers for almost 20 years. Sarah is the co-founder of the household regulation agency Jacobs Berger, LLC. The attorneys at Jacobs Berger are devoted to offering dynamic and personalised authorized options to divorcing households.
Associated:
DIY Divorce vs. Hiring a Divorce Legal professional
The ten Key Steps in an Uncontested Divorce
Divorce Paperwork and Paperwork