Divorce is one of the most difficult times in anyone’s life, and the decisions you make now will likely have a long-term impact on your life and that of your family, which is why having an experienced attorney is critical.
Regarding finances, here are the most common mistakes people make during divorce. Knowing these can help you avoid missteps and help ensure a smoother transition to your post-divorce life.
Underestimating living expenses
One of the most common financial mistakes people make during divorce is underestimating their living costs. If you fail to account for your monthly expenses, you could face serious financial strain.
A detailed budget that includes housing, utilities, food and groceries, childcare, car and home insurance and entertainment, plus any other recurring costs, will help you and your attorney negotiate a fair settlement and plan your future knowing what you have.
Forgetting about the future
Another common mistake people make is not thinking about their future or considering their long-term financial picture. Making sure that your divorce settlement includes retirement savings and insurance provisions is critical and responsible.
If you have children, consider their future expenses. For example, you might want to set aside money for your child’s college tuition or costs related to a sport they partake in.
Making emotional financial decisions
Divorce is an emotional process, and most people who experience divorce feel a whole range of emotions during it. While you should allow yourself to feel and grieve, you should make sure your financial decisions do not come from an emotional place, but rather a rational one.
Here is where having an attorney handle your case comes in. It is imperative to have an advocate who knows what to ask and what details are important when making financial decisions. Trying to navigate this process alone can lead to costly mistakes, and the consequences of those mistakes can last a lifetime.
Avoiding common financial pitfalls can make a difference in the outcome of your divorce and in your life after it. Seeking professional help to navigate the murky waters of divorce can have a significant impact in your financial future.
