On behalf of South Tampa Law Group on Monday, November 26, 2018.
No matter now amicable a couple may be during the divorce process, it is still a difficult and often emotionally challenging process. The stress of ending a marriage can often lead to decisions that are not always wise or sustainable for the future. If you are facing divorce, it is beneficial to learn about common financial mistakes people make in divorce and how to avoid them.
The choices you make during the divorce process can impact you for years to come. Of course, this includes decisions regarding your divorce order, but also other choices you may be tempted to make, such as impulse purchases. It is in your interests to think clearly and act cautiously during this time of change and transition.
Don’t let these mistakes derail your future
Financial mistakes during divorce will cost you in various ways. You may not understand the true impact until years later. Instead of allowing temporary emotions to drive your decisions, be intentional about protecting your interests both now and in the future. Some of the most common money mistakes you would be wise to avoid during this process include:
- Cashing in and spending your savings or investments – You may feel like you need to do this in order to pay bills and make ends meet, but this is not always the case. This can derail your long-term goals for retirement.
- Forgetting about taxes – The choices you make and the assets you keep could have a significant impact on your tax obligations in the future. Consider how your taxes will change as you make certain decisions.
- Spending a lot of money – During this time, you may be tempted to make impulse purchases and spend a lot of money, but this can drain your savings and cause problems down the road.
- Fighting to keep the house – You may want to keep your house, but in reality, you may not be able to afford to keep it and manage costs on one income.
During divorce, it is easy to forget about the long-term consequences of decisions and agreements. By keeping your eyes on the goal of a strong post-divorce future and stability for years to come, you can avoid certain missteps that can have negative consequences later. If you have concerns about your finances during divorce and your future, you may find it beneficial to discuss these concerns with an experienced Florida family law attorney before proceeding.