Looking at financial paperwork

Money Mistakes to Avoid During a Divorce

If you look at what the #1 cause of divorce in America is, you’ll see communication issues, growing apart, or infidelity. Although it varies from study to study, most can agree that money problems are the root cause of many divorces.

No matter your financial situation, money can wreck a marriage, so it should be no surprise those disputes follow couples into divorce proceedings. Even if money was not the leading reason for your breakup, it could become an underlying driving factor behind complicating your case. This can lead to a series of financial decisions that may cost you in the long run. Our attorneys have dealt with thousands of divorces, and we know the money mistakes you need to avoid when negotiating your settlement.

1. Not Considering Divorce Mediation

If you and your spouse can reach an agreement on most or all of the divorce issues, choosing mediation can save you thousands of dollars, time, and emotional frustration. Why pay for costly litigation when you don’t need to? Consult a mediation lawyer to see if this is a viable option for your situation.

2. Being Overly Attached to Assets

Divorces are emotional, but if you let it consume you, it could impair sound decision making and affect your settlement. For example, some people become so attached to their family home and fight for it, without realizing that they can’t afford it after the divorce. Try to let go of the emotional connection you have with some of your assets, and instead focus on maximizing finances.

3. Not Having a Post-Divorce Financial Plan

Maintaining two households is much more costly than one home. You may be free from your divorce, but not creating a new financial plan can be one of the biggest mistakes you make. Create an updated budget, and be sure to include any alimony or child support payments you may be receiving. You may want to seek assistance from a financial planner to help set yourself up for success.

We are here to help pave the way to a brighter tomorrow. Reach out to our Illinois property division lawyers today at (312) 487-2795 to schedule a consultation.