As most North Carolina readers know, there are many emotions and difficult decisions involved in a divorce. When individuals are dealing with painful adjustments and accepting the significant changes a divorce will create in their lives, it's easy to make mistakes. Financial mistakes during a divorce can be lasting. Below is a list of a few mistakes that you can avoid.
No matter how anxious you are to be done with your divorce, don't sacrifice your financial future. It's important that you fight for your financial wellness. Working with both a financial advisor and your attorney can help ensure that you are making decisions that will put you on solid ground in the future.
When all is said and done, as much as you will want to wipe your hands clean and move on with your life, don't assume all debts are paid. This includes mortgages and credit card debt. If you signed the house over to your spouse, check that your name has been removed from the mortgage as well as the title.
Lastly, don't use retail therapy to get through the rocky times ahead. Living as a single person can be a big adjustment if you have been relying on your spouse's salary during the marriage. Don't rack up credit card debt making purchases for yourself or your kids. Guilt and uncertainty may make you more likely to overspend on your kids. Some parents vie for their kids affections during a custody battle. If purchases are going to be detrimental to your overall financial health, they are not worth it.
There are many elements of a divorce that you will not have control of, your finances should not be one of them. Following a few simple steps can help lead you to a future that holds both emotional and financial stability.
Source: Huffington Post, "The Five Worst Divorce Money Mistakes...And How To Prevent Them," July 13, 2012