Money Mistakes To Avoid During Your Divorce

You need to keep in mind so many things during the divorce process. Outside of child support and alimony, the most stressful component to work through is your finances. It can be a windy road with many potholes if you do not proceed with caution.

When I first meet with my new clients, there are many talking points to share with them, but one of the most important points to share with both clients is the need to avoid costly financial mistakes – it can cost them dearly in the long run.

Here are a few insights I like to share with my clients to help them avoid financial pitfalls:

• Close joint bank accounts and open separate accounts
• Avoid big-ticket purchases – home, auto, etc.
• Don’t underreport your debt load, investment portfolio, retirement or monthly budget
• Make sure to bring into the conversation how inflation will affect you and your spouse
• Always be truthful and transparent – it will build trust
• Understand how your retirement and taxes will be impacted

One of the biggest money mistakes to make is not to use a mediator. Mediators are neutral throughout the process and help facilitate both clients’ decisions based on what’s best for their situation.

You can also work with a collaborative divorce team of professionals who will work as a team with both of you in a non-litigated manner, avoiding a costly court divorce.  A collaborative divorce team will consist of an attorney for each spouse, a neutral financial professional and, if needed, there are also mental health professionals that can join the team to help with communication issues, co-parenting, schedules, or any other issue that the spouses may need advice on.

For over 17 years, working as a Family Law Attorney/Mediator, Kevin Chroman has helped numerous couples reach harmonious agreements on divorce, child custody and spousal support through mediation and the collaborative law process.

Reach an agreement with your spouse in the peaceful, cooperative environment created by the Law Office of Kevin J. Chroman. For a free consultation, contact us today!

Now offering Online Dispute Resolution (ODR).

Note: This information is general in nature and should not be construed as legal/financial/tax/or mental health advice. You should work with your attorney, financial, mental or tax professional to determine what will work best for your situation.