Everyone knows how expensive divorce can be. In addition to attorney's fees, there are other, potentially more expensive costs that can take a terrible financial toll months and years into the future. The following are some examples of what these costly divorce mistakes are and how to avoid them:
It's understandable that during the tumult of a divorce, the last thing most people want is to endure the hassle and upheaval of a move. As a result, many people fight to hold onto their home, even if that decision does not make the most financial sense. Emotion can get the best of anyone sometimes, but be careful to take time and think rationally about your ability to afford the home on your own after the divorce. Do a budget, account for possible expenses and maintenance costs and, only then, make a clearheaded decision about whether keeping the house makes sense for your future.
The danger of anger
Divorce is an emotionally charged process, no doubt. Anger, sadness, disappointment, and mistrust are all common emotions. That being said, those going through a divorce must work hard to avoid letting these feelings seep into their decision-making process. Deciding to fight for certain assets or to keep other assets away from your spouse simply out of spite not only adds to the legal bills, but are likely to lead to trouble down the round given the lack of a sound basis.
Another common and expensive mistake associated with the divorce process is when couples focus on the short-term, rather than long-term implications of their actions. Sure, you may want a decent rental once you move out of your home. Does that rental need to be huge and glamorous? No. Sure, you may feel the need to spend money getting yourself back on your feet and established on your own. Should you blow through your savings to do so? No. These are all examples where taking a short-term view can lead to long-term financial trouble. Rather than leap into a decision, think carefully about how that could impact your life five or ten years down the road.