What do you think you will value more when faced with a decision that could change your life: Someone who will tell you that nothing needs to change or someone to tell you the truth without sugarcoating it? I truly believe that there aren’t enough professionals in the field of divorce who will tell it how it is. They tell you what they think you want to hear which can lead you to make some stupid mistakes. Mistakes that are easily preventable; mistakes that need not happen!

I tell it like it is. Yes, things will change because your combined household income will now be supporting two households. Let me help you navigate that change with a few simple points. Basically, let me spare you from making some stupid mistakes!

Here are a few things that I see repeatedly when it comes to divorce. Settlements are reached, (and occasionally, a judge will even order one!) individuals come to me afterwards, confused, and bewildered, I read the decree and simply shake my head. PLEASE, don’t make these mistakes!!! 

#3-The settlement doesn’t take taxes into consideration…AT ALL!

We all know that Uncle Sam will dive into our pockets every chance he gets.

Do not accept a settlement without fully understanding the tax implications! People frequently discover that their “half” of the marital assets is worth far less than they anticipated because their tax burden is higher than that of their spouse. Don’t expect your attorney to carry out this task! Attorneys are not accountants or financial advisors and a lot of them won’t bother to warn you of that. Consumer beware!

#2-Pensions are split 50/50 but no one knows what that really means.

I frequently come across divorce decrees that call for dividing pensions 50/50, but no one seems to know how this will truly play out. When do you start collecting? Is it possible to take a lump sum? Will there be a cost of living increase each year? What if you or your spouse dies? Will it keep paying? Will it double? When I ask these questions no one has a clue what the answers are! Without knowing something so important to your retirement, how can you possibly agree to a settlement? Again, don’t count on your attorney to be very helpful in this situation.

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

I understand that it’s possible to develop strong emotional ties to the family home and really want to stay but, before you even consider this option, you need to do a budget. I encourage you to meet with a financial advisor. I’ve seen cases when the spouse, who “won the house”, eventually ran out of money and realized they couldn’t refinance because now they don’t have enough income, and they have no choice but to sell. The selling costs are about 8% of the sale, all of which would have been split 50/50 with the ex-spouse if they had sold as part of the divorce. This could be the biggest stupid mistake you could make.

So, listen, I know “stupid” is not a very nice word and ignorance is probably more accurate. But please, realize you don’t know what you don’t know. Bring in the right experts for your divorce to make sure that you are smart and make the best decisions you can with all the information! Don’t go this alone. As we say at Pathway Divorce Solutions, “You only have one chance to get it right!” Let us help.