Deciding to divorce is a big decision on many levels. Not only will it impact your personal life, but it’s sure to do the same to your finances.
Proper preparation can go a long way in helping you avoid common divorce mistakes that are likely to cost you both time and money.
These four divorce mistakes are common. However, with the right approach they are easy to avoid:
- Fighting for the family home: It’s okay to do this if you understand the impact it will have on your divorce settlement and future finances. But, if you don’t consider these things, you may end up fighting for something you don’t really want or need. You don’t want to learn in the near future that the mortgage payment is taking a toll on your finances, thus leaving you house poor.
- Focusing on the short term: You want to do what’s best for you in the here and now, but don’t let this cloud the future. For example, trading retirement savings for another asset, such as real estate, may sound like a great idea during the divorce process. In the future, though, you could regret this decision when you don’t have enough money to retire.
- Seeking revenge: Divorce is not a time to seek revenge on your soon-to-be ex-spouse. If you focus your efforts on revenge, it could lead to an excessively long process that ends up costing you time and money, while adding stress to your life. Once you make the decision to divorce, you’re on the path to getting what you want. Don’t let revenge and payback guide your decision-making.
- Losing sight of the big picture: There are many components of divorce, including but not limited to property division, child custody, child support and alimony. Before you get in too deep, take a big picture view of the entire process. This will help avoid a situation when you focus all your time and efforts on one particular part of the process.
With the potential for these divorce mistakes to cost you both time and money, implement a plan for avoiding them. When you combine this approach with knowledge of your legal rights, you can feel good about your ability to efficiently move through the divorce process.