Divorce Financial Mistakes
“Where were you when I was going through my divorce?” is a common refrain when people first learn about Divorce Analytics. From there, the conversation often turns to divorce financial mistakes they regret having made but with which they have been forced to live.
A common adage in divorce is that you only get one bite of the apple. What does this mean for you? It means that once your divorce has been finalized you must abide by the terms of the divorce decree. At that point, it will usually be too late to reconsider decisions you may have made that were based on erroneous financial information, miscalculations or misunderstandings. You won’t get a sympathetic ear from the judge when you ask him or her to modify the terms of your divorce because, for example, your decision to keep the marital home in exchange for rights to your ex’s retirement account was not well thought out and is now causing you financial distress. Or, you agreed to something too rashly for the sake of moving the process along.
Having specialized in divorce financial planning for over 20 years, we fully understand how difficult it can be to think about your financial future when your life is in upheaval, but this is precisely the time when you need to slow down, take a deep breath and pay careful attention to all aspects of your and your spouse’s past, present and future financial situation.
We have helped hundreds of people from all backgrounds, all levels of wealth and all levels of financial expertise and awareness. From people who are highly educated about financial concepts to those who have little understanding of finances; from people who had previously been involved in every detail of their marital finances to those who had never paid the slightest attention to the joint checking account. Although every situation and every individual is unique, we have discovered a common thread: rare is the individual – including even the most savvy person going through the most amicable of divorces – who is able to think clearly about finances during the emotional upheaval of divorce.
The “Divorce Financial Mistakes” Category of the Divorce and Finance Blog lists some of the divorce financial mistakes we have come across over the years, mistakes made largely because we were not directly involved or because we became involved too late. We recommend that you periodically check this blog for new postings, as we continually discover additional mistakes people have made basis.