Five financial mistakes to avoid in your divorce

On Behalf of | Sep 21, 2021 | Divorce

Divorce can be one of the most stressful life events a person will ever go through. It can include difficult and emotional disagreements over child custody and child support, property division, alimony (spousal support) and more.

Divorce also requires you to put aside your anger, anxiety, grief, sadness and other emotions to make important financial decisions that might affect you for years.

A recent Investopedia article laid out some common financial mistakes people going through a divorce make so that you can avoid them.

Rushing

It’s understandable that many people want to get their soon-to-be-ex out of their lives as soon as possible. Rushing the divorce process can result in a lopsided division of property, however, when speed takes precedence over well-considered negotiations and a fair property settlement.

Refusing to try mediation

Mediation is an alternative dispute resolution process that can reduce the time, expense and stress of courtroom litigation. It can be an effective way to retain control of outcomes rather than leaving matters to a judge.

Hidden assets

People in divorces involving substantial financial assets are far too often unwilling to consider the possibility that their spouses hid wealth by transferring assets to family members or friends, by purchasing cryptocurrencies or using overseas bank accounts.

An attorney can help find hidden assets and help to ensure that you receive all you’re entitled to in your Maryland divorce.

Short-term perspective

Investopedia says “it’s a mistake to only consider regular, daily expenses in determining how much child support to seek.” Instead, child support should include future expenses for education, healthcare (including health insurance) and extracurricular expenses (class trips, sports gear, musical instruments, etc.)

DIY divorce

Trying to handle your own divorce puts you in the position of trying to manage complex legal and financial matters in which you have no training or experience. “Having legal representation can help you get a fair result,” says Investopedia.