The 2 Biggest Divorce-Related Financial Mistakes

No marriage is perfect, and many reach a point where the marriage itself is standing in the way of a new beginning for both parties. We all know how common divorce is, but what we may not know is that in many cases, it’s a lot more difficult than it has to be. In other words, a huge number of divorces could be a lot easier of the divorcing parties had learned about some of the common financial mistakes made during the process of divorce. If they had done so, the might avoid going into the same pitfalls themselves.

It’s difficult to rank or list the top 3 financial mistakes made during divorce, but we can definitely say that these are among the most common:

1. Not reaching more amicable resolutions

So many people just don’t realize how expensive and time-consuming the process can be when there are so many ongoing disputes and unresolved factors in the divorce. It might be related to child custody or co-parenting. It may be financially related. Often times, it will be both. No one is saying divorce is easy, but the more divorcing couples can resolve their arguments before reaching the legal stages of the divorce, the less expensive and stressful the divorce is ultimately going to be. It’s worth pointing out that fairness is a nature outcome of the mediation process.

2. Trying to formalize things too quickly

Sometimes a divorcing couple just wants to get it over with. There have often been long periods of tension and arguing before this point, and this kind of fatigue can make one or both parties want to rush through the details of the divorce and get it finalized as soon as possible. But operating this way almost always leads to some kind of critical oversight. Suddenly these details reveal themselves (perhaps they were not properly understood during the divorce process) and a dispute takes place after the fact — which can make things especially expensive. In other cases, the unfairness of the divorce will be accepted, but will create a grudge, which is especially unfortunate if there are children and co-parenting involved.

These may sound like simple or obvious mistakes, but they’re very commonly made in different ways. Sometimes people just aren’t aware that there are more amicable and economical paths to the same outcome, depending on where you live. Here in New Jersey, the law provides for collaborate divorce. If you or someone you know might be a good candidate for collaborative divorce, it’s important to realize that the whole process begins with mutual respect and an amicable wish to resolve all issues with the best intentions. This is the foundation for a successful collaborative divorce process. A trained professional can be indispensible for moving the process forward, and even giving expert advice on the financial side of the divorce — but it’s ultimately the couple who must lay the foundation for a successful divorce.

The good news is that with professional help, these ideal results are being achieved every day.

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