There is a lot to think about when going through a divorce. Like many, you'll want to keep a close eye on your finances.
While you may not get everything you want out of your divorce settlement, there are mistakes you can avoid to tilt the scales in your favor. Here are several to keep in mind:
- House poor. There's nothing wrong with wanting to stay in your home, but you don't want to do so if it will lead to financial difficulties in the future.
- A focus on the short term. You need to think about the long-term impact of your divorce, as to ensure that you set yourself up for financial success in the future.
- Overlooking how your financial situation will change. For example, you are now part of a single income family. This may make it more difficult for you to handle all your monthly expenses.
- Forgetting about tax issues. There is a lot to think about in regards to taxes, so you need to keep these details in mind as you negotiate your divorce settlement. If you don't think about the tax implications upfront, it could cost you in the end.
These are the types of financial divorce mistakes that you want to avoid. If you're able to keep these out of your life, it's much easier to feel good about the process and the way it's moving forward.
For most people, avoiding mistakes comes down to two things: knowing their legal rights and doing whatever it takes to prepare for every possible situation.
Source: USA Today, "5 biggest divorce mistakes financially," accessed Jan. 11, 2018