Often in a divorce, we are more focused on curing the problem at hand, i.e., distributing the real estate and assets, that we forget there is life after divorce. The biggest challenge is the lack of knowledge, understanding, and preparedness of how the various pieces of the divorce puzzle fit together and indeed overlap. You don’t know what you don’t know, and not being prepared can cause more damage than good.
Here are three financial mistakes to avoid when negotiating the marital home during a divorce settlement.
Being Emotionally Attached to the House
Don’t be married to the house. The marital home often brings an emotionally charged debate to divorce negotiations, which can impair good decision-making. Often, divorcing spouses that are emotionally attached to the family home don’t realize that they can’t afford to keep it. Yet, they fight tooth and nail to keep it, sometimes at the expense of retirement planning. Instead, try separating the...