When going through the divorce process, it can be a challenge to keep a bead on your finances. There’s a lot going on around you, and getting off track is every bit as easy as it sounds.
Here are some of the biggest financial mistakes you can make during divorce:
- Focusing on the family home and nothing else. Sure, you may want to stay put, but don’t turn this into a make-or-break situation. You need to examine the pros and cons of staying and leaving
- Forgetting to think long-term. It’s easy to focus on what’s best for you right now, but you need to be thinking about your future as well. The decisions you make during your divorce could impact you for the rest of your life.
- Neglecting to create a budget. Now that you don’t have another person’s income, you need to create your own budget to ensure that you stay on track month after month. You should do this as soon as possible.
- Looking at one piece of the divorce puzzle, and nothing else. For example, don’t get so caught up in property division that you overlook the impact of child support and alimony on your finances.
These are just a few of the many financial mistakes that you could make during divorce. By preparing yourself upfront, you’ll put yourself in better position to avoid trouble and feel good about what the future will bring.
It’s never easy to review your finances and learn more about your legal rights, but it’s an absolute must if you’re in this position.
Source: USA Today, “5 biggest divorce mistakes financially,” Wendy Spencer, accessed Dec. 20, 2017