Everyone makes mistakes and it’s from these mistakes that we learn and grow. However, when it comes to the divorce process, mistakes can end up being costly and negatively impact an individual’s future financial security.
We’ve previously discussed the negative aspects of allowing one’s emotions to rule during the divorce settlement process. While most divorces are accompanied by strong emotions, individuals who allow emotions to influence their decision-making process are likely to favor short-term gains vs. those that reap long-term rewards. For example, is fighting over the antique car your ex loves really in one’s financial best interests?
Making decisions in haste is also a mistake that many divorcees make. For example, individuals who feel a tremendous amount of guilt or regret about a divorce may concede to certain terms that have significant financial implications. Additionally, for parents, being short-sighted in one’s view of a situation can also have unforeseen implications.
For example a divorcing parent who plans to seek primary physical custody may want to fight to keep a previously-shared home. Doing so, however, can result in financial burdens as a home mortgage and repairs may prove to be too costly on one salary. Consequently, a parent may end up having to sell a home at a loss which adversely impacts the entire family. In other cases, a parent may make concessions with regard to child custody and visitation which can negatively impact a parent’s and child’s relationship for years.
When facing a divorce, it’s important to consult with an attorney who can answer questions, provide insight and ultimately fight to secure a divorce settlement that will serve an individual’s best personal and financial interests as well as those of his or her children.
Source: USA Today, “5 biggest divorce mistakes financially,” Wendy Spencer, March 7, 2015