Divorce is, without a doubt, emotionally taxing and full of difficulty, and the financial aspect of the process may quickly take center stage.
The wrong move now could negatively impact your financial security for years into the future. While everybody makes mistakes, some mistakes can turn out to be very costly. These include:
1. Not having a clear understanding of your situation
If your spouse has long handled the majority of the household’s financial decisions, you may not have a clear picture of your economic situation. That can leave you with an unrealistic idea of what assets you have and what will be available to help you afford post-divorce life.
Start gathering records and educating yourself (with or without the help of a professional) about what you and your spouse own, what you owe and what is available to divide.
2. Not having a solid plan for the future
You do not want to get so caught up in the present that you forget to think about the future. Before you divide any marital assets, decide who gets to keep the house and what to do about the 401K plan and other investments, you need to understand the financial implications of every move you intend to make.
In order to build a successful post-divorce life, take a hard look at your living expenses, what housing costs you may have to pay on your own, your debts and the way that your taxes may be affected by any agreement you make. That will help you develop a realistic approach to the situation and allow you to better define your post-divorce lifestyle goals.
3. Allowing your emotions to override your good judgment
The turmoil of a divorce can prompt all kinds of emotional responses, but you need to be cautious right now. Do not go on a sudden spending spree until you know that you can afford what you are buying on a solo income. Do not quit your job to try to get out of paying spousal support (or to try to get more). Do not cash in your investments and decide that you will worry about the taxes later.
This is the time to take a measured approach to every financial decision you make, not a time for impulsive or reactionary moves.
If you are approaching a divorce, the wisest thing you can do is to learn more about your rights and options. Call the Quinn Law Firm at 814-833-2222 to arrange a consultation.