Avoiding Financial Mistakes in a Divorce
Written by Lee Wyatt (last updated August 23, 2013)
Anyone that is thinking of going through a divorce should also be thinking about what comes next. By avoiding financial mistakes in a divorce you can go a long way towards helping you get things back on track when everything is said and done. The first step in being able to avoid making any mistakes is learning what those mistakes are, and what the potential fall out from them could be.
- Trying to get revenge. One of the most common, and potentially one of the most financially ruinous, is trying to get revenge. While the desire "to get even" is entirely natural, it may potentially cost you more than you would like. For example, the more time you spend arguing over every last cent, the more you are being charged by your attorney. It may be a good idea to look into getting a financial advisor to help separate your financials.
- Joint credit. Whether you are trying to keep everything "amicable" or are afraid that you can't get a new credit card, you need to close any accounts that had both of your names on. Frankly, if you can't stay married to your soon to be ex, why in the world would you want to tie your financial stability to them? You are both responsible for whatever charges get racked up on the account, and it would be entirely too easy for your ex to rack up a huge bill and leave you needing to pay it off.
- Too much faith. It is entirely too easy to fall into the trap of believing that once the divorce decree has been "settled" that you won't have any more problems. Just because a divorce decree says that a particular individual is responsible for a bill doesn't mean that they will take care of it. Double check with all creditors to make sure that the bills are being taken care of as they should. In addition, make sure that you let all creditors know (along with a copy of the decree if necessary) who is the one that is responsible for the debt.
- Making assumptions. There is an old saying about assumptions that just about everyone knows, and this is applicable in the divorce area as well. Make no assumptions about anything involving your divorce. Come up with questions about every little thing, and don't' be afraid to ask those questions.