Common Divorce Mistakes And Financial Pitfalls

Things to Avoid:  Common Divorce Mistakes and Financial Pitfalls

  1. Believing your spouse will be fair and cooperative.
  2. Having totally unrealistic expectations or demands of what you will gain from divorce.
  3. Not asking appropriate questions or signing documents without asking questions.
  4. Withholding information from your attorney.
  5. Not checking facts and figures given you by attorneys and others.
  6. Allowing emotions rather than logic rule your legal decisions.
  7. Expecting the legal system to be fair and the court to see things from your perspective.
  8. Allowing too much time to pass before enforcing a court order.
  9. Forgetting tax ramifications of decisions by not working with a financial advisor.
  10. Being a hindrance, not a help to your case.
  11. Not knowing how much it costs you to live each and every month.
  12. Assuming the custodial parent should always keep the house.
  13. Believing a 50/50 division of property is the same thing as a fair division of property.
  14. Deciding financial issues one at a time instead of understanding how they affect each other.
  15. Failing to include transaction costs in the settlement when the costs may be in the future.
  16. Using unrealistic assumptions about inflation and investment returns.
  17. Failure to consider creative financial solutions.
  18. Failing to ask “How do I know that I will be financially secure after my divorce?”
  19. Not insuring alimony and/or child support.
  20. Not understanding the consequences of unsecured debt before and after the divorce.
  21. Not evaluating the defined benefit pension plan correctly.
  22. Not understanding the purpose of a QDRO.
  23. Believing that spending retirement assets before age 59 ½ will always result in a penalty.
  24. Not having a financial plan in place for your future after you are divorced.*

*Securities and Investment Advisory Services offered through MML Investor Services, Inc. (MMLISI), Member FINRA/SIPC (http://www.sipc.org).

Divorce Financial Help is not affiliated with Allegiant Wealth Management.  MMLISI is not affiliated with either Divorce Financial Help or Allegiant Wealth Management.