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Costly Divorce-Related Financial Mistakes to Avoid

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There’s a lot to think about when going through a divorce, and sometimes it’s easy to let things fall through the cracks. Unfortunately, some neglected items can cause severe consequences, consequences that you just can’t afford when you’re trying to rebuild your life.

If you’re going through a divorce, be sure to cover your financial bases by avoiding these all-too-common financial pitfalls that can affect people throughout the process.

Your Home is Now Too Expensive

It’s hard to think objectively when you’re in the emotional throes of a complicated divorce. You may feel desperate to hold on to what you can, such as the beautiful home in which you’ve raised your children. However, the reality is that often, for many people undergoing a divorce, the sudden switch to a single-family income renders the home unaffordable.

If you’re unsure whether you can afford to continue making mortgage payments, talk to an accountant to figure out how to best allocate your income. If you must sell it, talk to an attorney about whether you’ll be responsible for a hefty capital gains tax upon the sale.

You Put Revenge First

In the heat of a difficult divorce, it’s easy to think about all the ways your former spouse has wronged you. In such heated moments, you may be compelled to fight for things not worth fighting for in the long run.

The problem with this is that this approach can rack up serious attorney’s fees, costing you both a lot of money. A dispute that takes all day to resolve can easily end up causing both you and your spouse thousands of dollars, and often times you’ll regret the amount of money you spent trying to fight for your cause. If you and your former significant other aren’t able to agree on anything, try mediating your disputes to see save time and energy and prevent unnecessary legal fees.

You Haven’t Thought About the Long Term

Sometimes, people are so adamant to get out of a marriage that they give their former spouse everything they ask for without questioning it. Years later, these people think back to what happened and wonder how they ever agreed to give up their million dollar homes and expensive assets without thinking twice about how that might affect their financial futures.

Even if you’re in a tumultuous divorce, the long term still deserves your attention. If you’re unable to resolve your issues amicably, talk to a good lawyer who will fight for your rights.

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