Divorce affects many aspects of our lives. It’s physically draining, emotionally taxing, and mentally challenging. It also affects our time and even our money. Financial considerations are important to make during divorce, and these must be done correctly to protect your interests, as well as that of your ex’s.
Unfortunately, a lot of women make big financial mistakes during their divorce, which in the long run, significantly takes a toll on their financial sustainability. Here are the top 4 financial mistakes divorcing women make and how you can avoid them.
- Trying to keep the house when they can’t afford it
A lot of divorcing women always fight to keep their house under the impression that it would be best for her to rear her children in the familiar environment where they grew up. There is also the sentimental value attached to the home that mothers have nourished and made comfortable for their families.
But in their effort to keep the house, they often neglect sitting down and crunching the numbers to figure out if they can afford it. And the result is they end up realizing they cannot afford payments for the home alone with their income.
A piece of advice for them is first to figure out what they can afford. And if it means they have to downsize their home or move to another neighborhood, then that is the best decision they can make.
- Not hiring a financial expert
You may have trusted your partner with money and other financial situations when you were married. But during divorce, it’s a whole different ball game. Should you be the one to get custody of your children, it would be in your ex’s best interest to minimize their income or at least declare a smaller amount in order to lessen their child support or maintenance payments.
Therefore, you should hire a financial expert to help you come up with the right values and determine the true income of your ex. This is especially important if you have a business together. You want to present to the court the real value of what you and your ex are making so they can calculate the proper amounts for child support and maintenance payments.
- Not self-educating
A divorce procedure is very complex and complicated. There are a lot of things to be discussed and decided, such as financial considerations, among others. Don’t make the mistake of getting too overwhelmed and making abrupt decisions during your divorce case.
As much as possible, you should be learning everything you can about the divorce process. Even if you have a lawyer, ask him or her to explain the procedures to you so you are aware of what to expect.
You should also be planning your life after your divorce. How much do you need financially to support your way of life? How much do you need for retirement? What are your tax obligations? You should go to a financial planner to help you settle these matters.
Remember that knowledge is power in situations like this. So learn as much as you can as this will help you plan and prepare your life post-divorce.
- Making decisions based on emotion
There is no doubt that divorce is going to be an emotional process. But this shouldn’t be the reason you’re making rash and impulsive decisions. Never decide while you’re angry or upset. You may want to seek revenge or justice for what your partner has done. It’s a painful process, but you don’t want these negative emotions affecting the outcome of your case.
A divorce case is very sensitive and emotional at the same time. The best thing you can do is to handle it maturely and wisely. Keep these mistakes in mind and work towards avoiding them to ensure the best outcome for your case.