5 Common Financial Mistakes of Divorce

1. Basing a Divorce Settlement on Refinancing the House: In the current economy establishing your settlement based on what the house is worth can be very dangerous. One may find themselves in a situation where they may not be able to refinance to satisfy the settlement. Be sure to contact a local real estate divorce expert Realtor who can help you establish the current value with a comparative market analysis and don’t forget to include the cost of the refinance.

2. Failing to Protect Your Credit: Don’t assume your spouse will pay bills as normal so take precautions to make sure they are paid on time.

3. Failure to Review Your Estate Plan: Divorce will not automatically revoke a will or trust so seek the advice and services of a competent estate planning attorney to make the necessary legal changes and protect your assets.

4. Failing to Consider Tax Ramifications: Work with a tax professional to help minimize the tax burdens that you and your spouse may be responsible for before and after divorce.

5. Unrealistic Financial Expectations: When going through a divorce one may have to realize that their life is going to change in many ways. Look down the road to ensure you don’t have unrealistic expectations that could cause severe consequences.

This is only a partial list of potential mistakes people face when going through a divorce. We can connect you to advocates who specialize in helping couples facing divorce make wise financial decisions to give you control, clarity and confidence.

We are not accountants or attorneys and strongly recommend that you contact and experienced professional before making any tax and legal decisions.