Even under the most amicable circumstances, divorce is a mentally and emotionally draining experience, and there are a number of common mistakes people make during divorce proceedings that can wreak havoc on their post-divorce finances. In order to ensure you’re prepared financially for life after divorce, it’s crucial that you avoid these mistakes:
- Basing important financial decisions around keeping the family house
- Cashing out retirement assets for a buyout on the house
- Co-signing student loans
- Not leaving despite signs of financial irresponsibility
- Not using the divorce as a springboard to financial empowerment
- Failing to plan for life after divorce during the divorce process
- Not severing joint tenancy titling before you file for divorce
- Allowing emotions to interfere with the divorce process
- Including college expense payments in the Marital Separation Agreement (MSA)
- Change estate plan prior to filing for divorce
To avoid these costly errors, you’ll need to do the following:
- Consider alternative dispute options
- Find an attorney you can connect with
- Learn how to keep your emotions in check — after all, this is a business transaction
- Spend the time and money to properly plan for your financial future
If you’re divorcing or planning on initiating divorce proceedings, don’t hesitate to get in touch. HoyleCohen can help you prepare for the road ahead.
