When facing a significant life decision like divorce, consider what you find more valuable: someone who reassures you by saying nothing needs to change, or someone who presents the hard truths directly? I believe there's a shortage of divorce professionals who are willing to be completely honest. Many might tell you what you want to hear, which can lead to preventable and unnecessary mistakes.

I provide straightforward guidance. When a couple's household income has to support two separate homes, changes are inevitable. Let me help you navigate these changes with some clear advice, ensuring you make smart decisions during this transition.

I often encounter certain issues in divorce cases. People frequently agree to settlements, or a judge may order them, and then come to me confused and bewildered after the fact. When I review their decrees, I'm often left shaking my head in dismay. I urge you to avoid these common mistakes! 

Mistake #3: Ignoring tax implications in the settlement.

It's common knowledge that taxes can significantly affect your finances. Never agree to a settlement without understanding its tax consequences. Often, people realize too late that the tax burden on their share of the marital assets is much higher than expected, reducing the value of what they receive. Importantly, don't assume your attorney will handle this aspect for you. Attorneys are not accountants or financial advisors, and many may not fully address the tax implications. Always exercise caution and consider consulting a financial expert.

Mistake #2: Misunderstanding how pensions are divided.

I frequently see divorce decrees mandating a 50/50 split of pensions, yet often neither party understands what this truly entails. Critical questions like when you can start collecting, whether there's an option for a lump sum, if the pension includes annual cost of living adjustments, and what happens to the pension if you or your spouse passes away are frequently left unanswered. It's essential to fully grasp these details before agreeing to a settlement, as they can significantly impact your retirement security. Do not rely solely on attorneys or mediators to clarify these points; it’s important to seek specific advice or conduct your own research.

#1 – Drum Roll – The biggest mistake I see is keeping a house you can’t afford.

I get that you might be emotionally attached to your family home and really want to stay. However, before you even think about this option, you need to create a budget. I also strongly recommend meeting with a financial planner. I've seen cases where, one or two years down the road, the spouse who "won the house" runs out of money. They can't sell a window to put food on the table, can't refinance because they don't have enough income, and end up having no choice but to sell the house. The selling costs are about 8% of the sale price – costs that would have been split 50/50 with the ex if the house had been sold during the divorce. It's a completely avoidable mistake.

I understand that using terms like 'uninformed' might be more considerate than 'stupid' or 'ignorant'. But it's important to realize that everyone has blind spots. When it comes to your divorce, seeking the guidance of knowledgeable experts can help you navigate the process with confidence and wisdom. Remember, you don't have to face this alone. At Pathway Divorce Solutions we believe in getting it right the first time. Let us be there for you.