Divorce will bring significant financial changes for both parties. The decisions made during this process will affect a person for years to come, and it’s critical think logically and clearly about all choices before moving forward. Money issues in a divorce are some of the most contentious and important things to address, which is why it is prudent to keep the focus on long-term financial health.
It’s easy to become overwhelmed by the emotions that come with a divorce, but these things should never be the driving force behind decisions made. Careful consideration during a divorce will result in a final order that allows for security and stability for years to come. It can also be helpful to learn about common divorce pitfalls and how to avoid mistakes that can cause financial issues in the future.
Common financial mistakes during divorce
It’s inevitable that both parties will have to make financial adjustments when their marriages end. While short-term stability is important, it is just as crucial to focus on what makes the most sense well into the future. Some of the most common money mistakes made during a divorce include the following:
- Keeping the house for sentimental reasons, which can result in one spouse having to pay taxes, upkeep costs and an expensive mortgage payment
- Failing to consider how state laws could affect property division and the terms of the final financial agreement
- Agreeing to an unfair portion of marital debt or keeping assets that you cannot afford
- Failing to fairly and reasonably divide retirement assets or withdrawing the money early, resulting in expensive tax penalties
These pitfalls and others serve as a reminder as to why it’s important to work with an experienced attorney at every step of your divorce process. With the right guidance, you can pursue terms that will allow you to look to the future with confidence.
On your side
We understand what is at stake during your divorce. Our goal is not to bill you for as many hours as possible, but instead we focus on what is best for you long-term. Our Pennsylvania legal team is dedicated to your financial well-being, and we will not compromise your rights or interests at any step of the divorce process. Divorce will change your financial life, but our goal is to help you navigate those transitions smoothly and confidently.