A divorce can put a lot of issues on your plate. Still, you need to keep an eye on your financial future even as you resolve disputes like your custody agreement and dividing your assets. If you fail to take certain steps in the middle of your divorce, you might find yourself on shakier financial ground once your divorce is over with.
Marketwatch explains some of the financial mistakes people make while they divorce. By knowing about these mistakes in advance, you may stand a better chance of avoiding them and building a more secure financial future.
Not hiring a financial advisor
Failing to consult with a financial expert while you are still going through your divorce means you may make many decisions without financial advice. If you have a financial advisor assisting you during the divorce, you might learn of better options to pursue regarding stock options, tax liabilities, private equity, or retirement accounts. A financial specialist may also help you realize options related to property you own like your residence, your business or a commercial property.
Minimal access to cash
It is easy to think that your added financial expenses are over following your divorce. However, you may incur more expenses adjusting to life after divorce. These can include buying a new home and new furniture, purchasing a new automobile, and anything else to help support your post-divorce lifestyle. So during the divorce settlement, consider what kinds of assets you want to keep that you can turn into cash when you need it.
Not having life insurance
If you believe the child and spousal support established in your settlement will help your financial future, you may have reason to think again. Over half of parents in the United States actually do not receive full child support. Even if you still have an amicable relationship with your ex, a job loss, incapacitation or death could bring a halt to those payments.
These reasons are why some spouses take out a life insurance policy on their former spouse. In the event something happens to the paying spouse, the policy will pay death benefits to the receiving spouse. It may also be of help to see if your existing policies have death benefits.