Avoiding financial mistakes is important at any time. It can be particularly important though following a divorce. Fresh off of a divorce, a person can be in a more vulnerable financial position than they are used to. In such a position, financial mistakes can have lasting repercussions that can seriously get in the way of a person being able to get their post-divorce life off to a good start.
Unfortunately, the time following a divorce can also be a time in which a person is more prone to financial mistakes. With all the things dealing with a divorce involves, a newly divorced individual may be tempted to not give financial matters terribly close thought.
Examples of financial mistakes that can end up being costly for a newly divorced individual include:
- Making rash financial decisions.
- Not adjusting their budget to account for their new overall financial situation.
- Not adjusting their lifestyle to their new income situation.
- Impulse shopping.
- Shutting down when it comes to dealing with financial matters.
There are things divorcing individuals can do to help avoid falling into these mistakes. Examples include: making it a point to give careful thought to financial decisions, making advanced preparations for dealing with their new financial situation (such as carefully planning out a new budget) and reaching out for help when needed.
Post-divorce financial behavior is not the only finance-related area connected to divorce where mistakes can be costly. Another such area is divorce property division. Mistakes in property division proceedings or negotiations could cause a person to be in a weaker position financially than they have to be following a divorce. Careful thought, solid preparation and good guidance can be key in steering clear of property division mistakes. Divorce attorneys can help divorcing individuals with getting ready for and navigating proceedings and negotiations involving property division.
Source: U.S. News & World Report, “Top Money Mistakes for the Newly Single,” Geoff Williams, Feb. 2, 2016