Going through a divorce in Massachusetts is usually an emotional and stressful process, and it is even worse when there are kids involved. Unfortunately, these emotions can get in the way of making important decisions, and this can lead to unwanted results or unintended financial consequences.
It helps to be aware of common mistakes many couples make so that others going through a divorce can avoid them.
Expectations of the Same Lifestyle
Many couples are not realistic about what a divorce means in terms of lifestyle changes. WTOP discusses that even when both spouses are working, a divorce means that two incomes must now support two households instead of one. It is even harder when one spouse is paying spousal and child support, as both sides suffer financially. This affects both parents and children.
Lack of Focus on Details
It can be hard to focus on detailed things when dealing with sadness and/or anger, but it is important when dealing with divorce. The more detailed each partner is about debts and assets, the faster an agreement about division can occur. When there are children involved, details about schedules and financial contributions continue to be important after the divorce is final.
Fighting to Keep the House
According to Forbes, mistakes related to finances are extremely common. One of these is fighting to keep the home without considering the financial implications. Paying for the mortgage, taxes and upkeep can be challenging for one salary, and it sometimes is not worth it in the long run.
Making Financial Decisions Based on Short-Term Needs
Going through a divorce and getting used to post-divorce life takes a new financial plan and way of thinking. Some couples may cash out investments or use money from retirement funds to pay for current bills or to keep up with a certain way of life. This may help in the meantime, but it has tax implications and reduces the amount of money available for future needs.