If your marriage is ending, you are probably experiencing a lot of overwhelming stress worrying about how to do everything correctly. The financial and emotional impacts of divorce may impact you for the rest of your life.
There are a lot of common mistakes that divorcing couples make. Here are some pitfalls you should avoid:
1. Becoming “house poor”
You may not want to uproot your life and move out of the family home. This may be an even stronger feeling if you do not want to cause a lot of change for your children. While you may feel an attachment to your house, you do not want to give up other significant assets in exchange for it. If you give up retirement assets, you may find you will not be able to make the house payments. Make sure you consider the long-lasting financial consequences of the property division process.
2. Seeking payback
If your spouse is hurting you, you probably want to retaliate and inflict pain back. In fact, getting revenge at any cost may be a major goal in your mind. Not only will this create a toxic environment, but it will also drag out the process and end up costing you more. Instead, try to be reasonable. Why drain your finances for some “payback”?
3. Shortsightedness
It is easy to get stuck in the present moment when you are getting a divorce. You may focus on all the short-term problems rather than thinking about the bigger picture. Always remember to think about the advantages and drawbacks of every decision you make. Keep in mind that the choices you make right now may affect you for years to come.
Divorcing is always a complex process full of hardships and pitfalls. Thankfully, it is possible to avoid missteps if you learn from the mistakes of others and listen to the advice of your attorney.
