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Three financial mistakes to avoid during divorce 

On Behalf of | Dec 15, 2021 | Divorce |

Love is a beautiful thing. When two people meet and fall in love with each other, they hope to live happily ever after. Unfortunately, this is not always the case, especially when a love story ends in a contentious divorce. 

A divorce is an emotionally draining process that can leave one or both parties making costly financial decisions that will hurt them for years to come. It is important that you are aware of the pitfalls that can ruin your post-divorce finances. 

Here are three common financial missteps couples make during the divorce process and how you can avoid them. 

Overlooking marital debts

During the divorce process, the court will oversee property division in accordance with Pennsylvania laws. Unfortunately, most couples fail to pay attention to marital liabilities during the asset declaration. As a result, one party may end up with the burden of marital debt. It is important to understand that lenders will hold both parties responsible for any debt on their name. As such, you need to talk about marital debt too before finalizing the divorce process. 

Failing to keep records

The ultimate rule for prudent financial decisions during the divorce process is proper record keeping. It is extremely important that you maintain proper financial records throughout your divorce. Proper financial documentation will help your legal representative, mortgage lender and tax advisor protect your interests before, during and after the divorce process. 

Rushing the settlement process

Before getting down to settlement negotiations, it is important that you clearly define your goals and have a sound understanding of what your financial status will be like after the divorce. You should have a clearer idea of both parties’ income as well as your monthly budget before you can start negotiating items like alimony and child support. 

Divorce can be a challenging process to navigate. Avoiding these common mistakes can help you get the best deal out of the divorce process and turn on a new leaf without paying through the nose.