Common Financial Mistakes

Going through a divorce is an extremely stressful event. As a result, you are making financial decisions when you are under great emotional duress and can’t think clearly about your future. Unfortunately, the mistakes you make will often have lasting consequences for you and your family. Don’t let these common mistakes happen to you:

• Not understanding there are alternative methods to dissolve your marriage that do not require going to court.
• Estimating your budget when you complete your financial affidavit.
• Failing to consider the liquidity of your marital assets. Not all assets are created equally - some assets are treated differently for tax purposes.
• Fighting to keep your marital residence when you simply cannot afford it.
• Not understanding your health care options after you divorce.
• Not recognizing that an equal division of assets is not always equitable
• Failing to adequately insure your divorce settlement. Insurance can guarantee your payments and your family’s security.
• Overlooking a defined benefit plan. This deferred income stream is a valuable marital asset.
• Failing to divide stock options that are currently worthless. These assets may have considerable value years from now.
• Disregarding the long-term effect inflation has on your living expenses when you negotiate child support and alimony.
• Forgetting to cancel all jointly held debt.
• Not developing a plan for you and your ex-spouse to share in the costs of your children’s extra-curricular activities and education.