4 Financial Mistakes to Avoid During Your Divorce

1. Thinking Short-Term About Asset Division

Keeping the family home might sound comforting, but will it grow your wealth or drain it with maintenance and taxes? The same goes for retirement accounts. Trading them away for cash or other assets might seem fair now, but how will that impact your golden years? A financial advisor can help you think beyond the moment and see the bigger picture. Remember, even if you're saving big on the uncontested divorce, some decisions are just too important to rush.

2. Underestimating the True Costs of Divorce

Divorce can be expensive, even when it's low-drama. There are filing fees, attorney costs, and the little things no one tells you about, like setting up a new household. That's why budgeting early is your secret weapon. Opting for an uncontested divorce? Smart move! The uncontested divorce cost is far less than duking it out in court, but that doesn't mean there won't be other expenses. Be clear about what you'll owe for things like mediation, appraisals, or even financial planning services. Knowing where your money is going will give you peace of mind, and fewer surprise bills.

3. Leaving Joint Debts Untouched

Divorce agreements don't always protect you from creditors if your name is still on the account. To avoid this mess, aim to settle or refinance joint debts before the divorce is final. Whether it's car loans, credit cards, or a mortgage, make sure you're not tied to any financial obligations you can't control. You'll sleep better knowing your credit score isn't at risk because of someone else's decisions.

4. Letting Emotions Take the Wheel

Letting emotions dictate your financial choices can lead to regret. Saying "fine, take it all" out of frustration or holding onto a house you can't afford because it feels like a win? Not worth it. Take a breath, lean on your support system, and make decisions based on logic, not feelings. Therapy can be a lifesaver here, helping you process emotions without letting them derail your future.

Charting a Financially Smart Path Forward

So, you've signed the papers, and you're officially moving on. Now what? It's time to reset, rebuild, and get financially savvy. If you've gone the uncontested route, you've already saved a bundle. The divorce cost isn't just easier on your bank account; it frees up mental energy for what comes next. By dodging these financial mistakes and taking charge of your money, you're setting yourself up for a fresh start.