Divorce is emotionally overwhelming, and it’s easy to make financial mistakes when you’re under stress. But the choices you make now will impact your future. Here are four common money mistakes people make during divorce and how to avoid them.
1. Underestimating Future Expenses
After your divorce, your expenses will likely change. You will need to complete a financial affidavit that reflects your post-divorce life. Many people forget to include things like medical costs, home repairs, or even rising utility bills. Even missing $200 per month adds up to $2,400 a year. If you’re paying or requesting spousal support, that gap could cause serious issues. A Certified Divorce Financial Analyst (CDFA™) can help you catch these details.
2. Relying Too Much on Your Attorney
Your lawyer is there to guide you through the legal process, not to manage your finances. They may review your financial documents, but they usually take your word on the numbers. One of the most common mistakes is misvaluing a pension, which can be one of the largest assets in a marriage. A CDFA™ can ensure your financial disclosures are accurate and consider taxes and long-term value.
3. Avoiding Direct Communication
Letting your lawyers handle all communication can get expensive fast. If each attorney charges $300 per hour, even simple back-and-forth messages can rack up huge bills. If possible, try to have direct conversations with your ex about practical matters. The more you can agree on yourselves, the more money you will save.
4. Making Emotional Decisions
Wanting to just “get it over with” is common, but rushing the process often leads to bad deals. Many people walk away from what they deserve just to avoid conflict, only to regret it later. A 50/50 split may not be truly fair depending on your situation. Take your time, stay focused on your long-term needs, and get professional advice before finalizing anything.