4 Financial Pitfalls to Avoid During Divorce~ 2 min read
Divorce brings financial challenges. Challenges that can cost you not only money but add to your stress and how long it takes to resolve your case. However, there are some important financial pitfalls to avoid during your divorce that will help you to make good financial decisions.
1. Letting Emotions Guide Your Financial Decisions
One of the biggest mistakes you can make during your divorce is to let your emotions take over when making financial choices. For example, you might feel attached to your house or a sentimental item, but a decision to keep these assets may not make financial sense. If maintaining the house strains your budget or you end up fighting over property with little value, it’s not worth it. Put your focus on what will truly benefit your long-term financial health.
2. Fighting Just to Fight
Fighting to cause stress for your spouse can backfire. Every extra hour spent in legal battles means you are spending more money on attorney fees. Instead of letting anger or resentment drive you, think about where that money could go—your retirement, your children’s college fund, or even a much-needed vacation to move forward with your life.
3. Choosing the Wrong Divorce Process
The divorce process you choose will impact your financial outcome. Litigation leads to multiple court visits and escalating costs. On the other hand, working through no-court process like Mediation or Collaborative Divorce can save you money and reduce the chances of future court disputes.
4. Failing to Think About the Long-Term
When dividing your assets or creating agreements, think about long-term sustainability. Can you actually afford the lifestyle you’re fighting to keep? Does the plan you are creating work for the next few years or decades? Making decisions based on sound financial planning, rather than emotion, will serve you better in the long run.
Divorce doesn’t have to drain your finances or emotional well-being. By avoiding these common financial pitfalls, you can move forward with making better decisions that will benefit you and your family.
At Family Ally, we are committed to helping families find amicable and cost-effective solutions to their divorce. Let us guide you toward a resolution that protects your future and your family’s financial health. Contact Jennifer Piper at 314-449-9800 to schedule a consultation.
Family Ally is located at 130 S. Bemiston Ave., Suite 608, St. Louis, MO 63105.
