One of the biggest generalizations about divorce is that they end up costing couples thousands in legal fees, custody agreements, spousal support, and more. Sure, you’re not going to get out of a divorce without eventually putting some money down in order to move on.
However, sometimes a divorce can get ugly and at the end of the day, decisions are made that leave one or both parties in financial ruin. Before you start negotiations, keep these common financial mistakes in mind and prevent any long-term damage in the next chapter of your life.
Fighting for the Family Home When You Can’t Afford It
You may have a lifetime’s worth of memories in your family home, and it makes perfect sense to want to fight tooth and nail for this asset. However, keep in mind that your home costs like mortgage payments, property taxes, and maintenance can easily crush you under their weight if you aren’t prepared.
If you know that you won’t be able to financially sustain your home post-divorce, let it go! Save yourself, and your credit the pain of having to go through foreclosure because you put your feelings before the data.
Not Tracking Your Monthly Spending
As you’re going through your divorce, take a few months to personally track all of your spending. From groceries to that little treat you pick up on payday, it’s crucial to have an accurate idea of how much life is going to cost you after divorce and if you can afford it.
Even with spousal support involved, it’s easy to underestimate your future needs and end up with a substantially decreased quality of life.
Our advice is to meet with a financial advisor and discuss your plan. They will be able to help you factor in issues like inflation and insurance costs post-divorce into your plan.
Failure to Understand Marital Finances
If your partner was the one who handled all of the finances and you just rolled with the punches, it’s time to buckle down and understand how your marriage financially functioned. With the help of your divorce lawyer and financial advisor, you can ensure that financial assets are divided as fairly as possible during your divorce.
Entering your divorce blind to this element puts you at risk of your partner having a huge advantage over the total outcome of this aspect of your divorce decree.
Not Saving Cash During Your Divorce
Divorce can be a lengthy process. That’s why we recommend those ready to follow through with divorce should start a savings fund that will help them out on a rainy day. Divorce finances can be costly and things like spousal support claims can be stalled.
Don’t leave yourself in a situation where you’re at risk of zero income or funds during the divorce process. Use this time to take the first steps towards independence and ensure that your needs are met, no matter what.
Make the Right Financial Decisions With Nilsson Legal Group
When you put your divorce in the hands of the divorce lawyers of Nilsson Legal Group, you’re getting full coverage with your services. By that, we mean that we will ensure that you and your family are properly protected from the moment you meet for a free consultation to the second the ink on your divorce decree dries.
Trust us to help you make essential and effective financial decisions amidst the potential chaos of divorce. Contact us today to schedule your free consultation.