A divorce is one of the most stressful things a person can go through in life, not only on a personal level but also on a financial level. There are numerous mistakes that a person going through divorce can make, as The Wall Street Journal recently discussed, that can cause serious financial harm.
Today we will highlight a few of the pitfalls along with our own analysis:
Divorce pitfall No. 1: Not understanding your assets.
In many cases, one spouse handles the finances, while the other spouse takes on other responsibilities. However, the spouse who has been out of the loop with regard to finances is at a major disadvantage and could leave the marriage with less than he or she is entitled to.
Divorce pitfall No. 2: Deciding to keep the house.
The marital home is a very important and sentimental issue for many people going through divorce, and some decide to keep it as part of their property settlement even though it could be a bad decision in the long run. That’s because it may be too expensive to keep up with the costs on your own.
Divorce pitfall No. 3: Underestimating your post-divorce expenses.
Planning your post-divorce expenses is not a time to be modest. Too many people underestimate how much they will actually need to pay for food, clothes and other necessities and end up with a settlement that is not sustainable. You only have one chance to ask for what you need.
Divorce pitfall No. 4: Focusing too much on fighting.
It’s understandable if you have the urge to get back at your ex by fighting over every last detail of your divorce. But you also suffer financially as a result because the more you spend on your divorce, the less money that is left for your future.
To find out more about our firm can help keep your divorce costs down so your divorce doesn’t devastate you financially.