Money Mistakes during a Divorce
Be ready. A divorce is mentally exhausting and emotionally draining. We call this “divorce brain” where you are not always thinking clearly and making clear, objective decisions in your life. How can you?
Keep an eye open for these common mistakes, as levelheaded as you believe you are.
1. Lowballing post-divorce spending - While done intentionally, it can be devastating to find out that your spending is higher than you anticipated. When filling out your financial affidavit, keep in mind this reflects your spending post-divorce. Therefore, it’s crucial to not leave anything out, be realistic. Decisions such as spousal maintenance may be derived from your figures, therefore the more accurate the better. Consider reviewing your financial affidavit with a CDFA™ to scrub your figures to ensure they are realistic and accurate. It’s easy to overlook expenses.
2. Assuming your attorney will handle everything - Please remember that your attorney is NOT your therapist or financial advisor. This is not their job and it’s unfair to expect this. As tempting as it is to call your attorney to complain and air the dirty laundry of your soon to be ex, it’s an expensive call! And not the best use of their time. Allow your attorney to specialize in their area of expertise. Call your therapist to vent and inquire with your financial professional on the figures.
3. Allowing others to speak on your behalf - Professionals are wonderful, but not free. Therefore, any communication you and your spouse can work out is more money in both of your pockets. While it is less painful to have others relay your messaging, it’s also more expensive. More common is for couples to start out this way, only to abruptly stop once they realize how much money they are spending. Refusing to speak to the other party, thereby forcing them to go through attorney’s costs both of you, period. Keep this in mind.
4. Ruled by emotions - It is natural to want to make decisions from emotions, or even to throw your arms up exasperated, just accepting the settlement so you may “get this over with”. An efficient divorce is possible if done properly. Consult with your professionals and take your time to thoroughly understand what your future will look like post-divorce.
