Divorce and Finances: 10 Mistakes to Avoid

There is no wonder people find it difficult to concentrate in the middle of a divorce. There are so many things to take care of. Fair assets distribution, best interests of children, finance divorce issues, personal wellness, after all. In such a hassle, a detail or four may slip and cause huge trouble in the future.

This makes it necessary to prepare thoroughly, especially when it comes to money-related issues. Learn the common marriage termination mistakes connected to finances to avoid them and succeed with your own end of the marriage. 

1. Not Following a Budget

If you cannot create and follow your budget, the result is obvious, you are doomed to financial troubles. Whether you go for a cheap divorce online or not. It is necessary to precalculate your post-divorce living standard so that you consider it during the divorce settlement. Plus, it will be better for you to reduce waste during and after marriage termination. Then you can create your financial plan to stick to it and prevent financial disaster without any hassle.

2. Neglecting Credit History

Good credit history may come to save you someday after divorce. But if you prefer to ignore your joint accounts, forget about some old deals, or fail to split your mutual debts, your credit points may go really low. You should pay your time and attention to organizing your relationships with banks so that when you need it you can get some financial help as a reliable person. 

3. Opting for Financial Punishment

One of the worst mistakes to make during financial divorce settlements is to concentrate on revenge. If you wish to punish your ex with your divorce outcomes so that they suffer financially for the harm they brought you, expect to suffer, too. You will never manage to build a steady and financially safe future if you are stuck in your past, so let it all go and care about what really matters. 

4. Going After 50/50 Split

The common mistake that most couples make when dealing with divorce and finance is opting for a 50/50 split as a top fair solution. But the truth is that the equal part is not always equitable. You should also consider how you both committed to the assets, how the value may change in the near future, what financial responsibility both of you will have, etc. Remember that it is better to care that your marriage termination agreement is comfortable for both of you than racing after some number that should define fairness. 

5. Keeping a Marital Home

Keeping a marital home is not a must, it doesn’t define you as a successful divorcee. So, if you cannot afford to maintain it after the end of your marriage, you’d better let it go. A smaller accommodation will give you more financial freedom and comfort and you will call it home in a glimpse of an eye.

6. Not Securing Support

It is good for you when you are assigned alimony or child support to add to your personal finance plan. But you can never predict the future and guarantee that you will be supported by your ex continuously. Bankruptcy, disability, or any other mischief may happen to leave you penniless. This makes it necessary to insure your child or spousal support payments so that when your former partner cannot cover them, the insurance company will care for you.

7. Forgetting about Details

Some divorcees forget about 401(k), some lose the changes in taxation after assets split, and others forget about crucial agreements completely. So that they all get fined or lose benefits in the end. This makes it vital to keep the agreements at hand, study the local legislature on your issues, and stick to the official regulations on your case.

8. Following Your Emotions

Never let your emotions guide you through the marriage termination process. Otherwise, you will end up with financial problems and divorce troubles. You need to bear in mind that your divorce agreement will affect your life for many years ahead. You should better find a reasonable way to deal with any emotions and take all decisions with a cold head and main priorities in mind.

9. Not Consulting a Specialist

Being too confident or trying to save as much as possible when getting your relationship to an end officially may have negative outcomes. Even if you have the simplest case ever, a general review from a divorce attorney and/or financial consultant is a must. This way you will be sure you are taking the right decisions and not going to lose what belongs to you.

10. Failing to Commit Properly

If you want to deal with your divorce properly so that you don’t end up broke physically, mentally, and financially, you should put in some effort. You’d better not rely on your divorce lawyer completely, but take part in the process yourself, too. This way you will be sure that the outcomes align with your needs and preferences and your divorce aftermath will please you for sure.