Common Financial Mistakes Made During Divorce
When you go through a divorce, there are many decisions you will have to make that could have a lasting impact on your financial standing and security. As you make these decisions, it’s important to seek the assistance of a skilled professional so you can avoid making some of these common mistakes:
- Underestimating expenses. It will take some time to adjust to your financial situation coming out of a divorce. You are likely to underestimate the amount of expenses you have when you create your first couple budgets as a newly single person. This could lead to some significant financial challenges if you don’t properly plan ahead.
- Keeping the family home when you cannot afford it. There is a lot of emotional attachment to a family home, but sometimes it just doesn’t make financial sense to hold onto it. Seriously consider all of your options, including those that would be the most financial sustainable for your circumstances.
- Not looking at the big picture. Rather than going through a checklist and deciding all of your financial issues one at a time, you need to be able to analyze how all the issues impact each other and the consequences each decision will have on your short-term and long-term wellbeing.
- Assuming you’ll get an equal division of assets. “Fair” or “equitable” division of property is not necessarily the same thing as an equal division of property. If you operate under the assumption all of your assets will be split down the middle, you could be in for a rude awakening at the end of the divorce in terms of your finances and the property you get to keep.
For more information about how to avoid common financial mistakes during divorce, meet with the skilled La Plata family law attorneys at Mudd, Mudd & Fitzgerald, P.A.