Financial planning is key when you’re going through a divorce. Any mistakes can plague you for years to come because divorce terms usually cannot be modified. Here are some mistakes that should be avoided at all costs.
Not considering retirement
Many people focus on the here and now of financial planning in a divorce. Of course, meeting your needs each month is a valid concern. However, you will need to retire at some point. People should not overemphasize the present at the expense of the future.
Becoming house poor
Another common mistake is stretching too far to keep the family home. Many people are understandably attached to the family home, but there are some circumstances that make people better off selling it and moving. Some individuals find themselves tied into a mortgage without the assets to pay it because they bought their ex-spouse out of their interest.
Not getting legal help
Many people think that they can handle their divorce on their own. Even if they can successfully negotiate a settlement agreement, there are issues that they might have overlooked that could pop up in the future. Your divorce attorney may point out issues you are not seeing that you should know about.
Trying too hard to get along
An amicable divorce is almost everyone’s goal, but it should not come at the cost of your financial interests. Some people end up compromising too much to try to keep things friendly. In the end, their ex-spouse has their way financially, and they leave too much money on the table. There is a way to have an amicable divorce without giving in to everything that the other spouse wants.
Getting advice from a divorce attorney early in the process may help keep you from making mistakes that jeopardize your financial future. Legal advice might actually increase the chances that you settle your divorce without having to go to trial, and your lawyer may help look out for your long-term financial interests.