Top Financial Mistakes Divorcees Make

October 24, 2018

We all make mistakes in unfamiliar situations. No matter how many books you read, or how many people you talk to, there will be things you wish you would have handled differently. Here are a few of the most common mistakes divorcing individuals make.

  • Keeping a house they cannot afford without understanding the trade-offs
  • Agreeing to refinance immediately
  • Living the same lifestyle they had before the divorce
  • Failing to close joint credit cards and loans
  • Not properly executing a QDRO (Qualified Domestic Relations Order)
  • Not changing their beneficiaries and estate planning documents
  • Not understanding they need to be married 10 years to qualify for their ex-spouse’s social security benefits
  • Not protecting maintenance and child support with disability insurance as well as life insurance
  • Not understanding why some same-valued assets are not worth the same
  • Not calculating the basis and taxable gain of securities
  • Paying tax on maintenance specifically not taxable in the MSA
  • Not addressing how a tax refund or loss carryforward will be split
  • Not appropriately addressing with their children how the finances will change
  • Not negotiating for a split of miles and hotel points