Bleu Finance - Discover Commodity Investing
Thursday, June 8, 2023
  • Bleu Finance
  • Accountant
  • Credit
  • Finance
  • Insurance
  • Investment
  • Loan
  • Trading
Subscribe
Bleu Finance - Discover Commodity Investing
  • Bleu Finance
  • Accountant
  • Credit
  • Finance
  • Insurance
  • Investment
  • Loan
  • Trading
No Result
View All Result
Bleu Finance - Discover Commodity Investing
No Result
View All Result
Home Finance

3 Costly Money Mistakes You Should Avoid During a Divorce

by Kasper Lee
2 years ago
in Finance
0
3 Costly Money Mistakes You Should Avoid During a Divorce
160
SHARES
2k
VIEWS
Share on FacebookShare on Twitter

Going through a divorce is one of the most heart-wrenching experiences in an individual’s life. The emotional toll and social stigma of ending a marriage are further complicated by legal proceedings and custody battles. Amidst this rigmarole, finances often take a backseat.

But it’s worth keeping in mind that the end of a marriage also involves a wide array of financial consequences. Irrespective of how long you’ve been married, chances are you’ve accumulated a plethora of assets, both tangible and intangible, with your spouse.

Fair division of these assets is important for making the divorce less stressful. Also, you might have applied for loans together or held joint retirement assets. Then there’s the entire issue of child and spousal maintenance, as well as associated taxes.

Despite the emotional toll of a divorce, it’s important to watch your finances for a better future. In this blog, we’ve compiled a list of the most common financial mistakes people make during a divorce. Also, we’ve outlined helpful ways to avoid them. Let’s take a look.

1. Not Evaluating Your Financial Situation

Before you start splitting any assets with your spouse, you should get a thorough assessment of your financial situation. It’s a good idea to consult a certified financial planner who will help identify your individual and joint assets.

At this point, it’s important to take a closer look at your income, savings, and retirement assets as well. Also, you should get your credit report from a reliable reporting agency. It’ll give you a fair idea of everything you owe to creditors, including joint debts with your spouse.

2. Getting Emotional About Real Estate

Depending on the duration of your marriage, you’ve likely bought one or multiple houses with your spouse. You could also be sharing a mortgage with them. But when it comes to your home, it might be difficult to perceive it as an asset.

Don’t be surprised if you get emotional and decide to forgo any equity of your house. Worse still, you could end up agreeing to keep your name on the mortgage while letting your ex stay in the house. That means you’ll be held liable if they fail to make mortgage payments on time.

These actions could further jeopardize your financial status, and take a toll on your credit score. That’s why it is a good idea to explore options to remortgage your real estate assets. 

Remortgaging or refinancing your mortgage is a straightforward way to remove one of the spouses’ names from the mortgage. However, make sure you check with the existing lender about any penalties or early repayment charges you need to pay for closing the mortgage before term.

You could also consider a remortgage deal when you or your spouse need to purchase new property. It’s equally useful when one of the spouses chooses to take complete ownership of the house.

If refinancing your mortgage isn’t a viable option, you could consider selling your real estate assets and splitting the proceeds.

3. Not Planning for the Future

Thinking about the future won’t be your priority when your present circumstances are filled with uncertainty. But it’s worth remembering that a divorce can cause significant changes to your current financial status.

If you were the low income-earner in the family, you might have to rely on support from your ex. On the other hand, if you earn more, then you’ll suddenly find yourself covering the expenses of two households.

In either case, you’ll need to identify new income sources. It isn’t surprising that most individuals need to increase their income by nearly 30% to maintain their standard of living after a divorce.

It’s a good idea to re-evaluate your monthly budget, and identify ways to cut expenses. Also, you’ll need to find new investment strategies to fortify your savings. Similarly, you might have to take a closer look at your retirement plan, and save more money to secure your retired life.

Turning a New Leaf

Going through a divorce is a life-altering experience. While it’s going to be an exhausting and nerve-racking phase, you should think of it as a new chapter. And as with any fresh start in your life, thorough planning is the key to making it a success.

Get professional help from a financial planner to understand your finances, and identify the best ways to divide your assets. Also, devise ways to maintain your standard of living after the divorce. Don’t forget to remortgage your home or sell it altogether before finalizing the divorce.

Image: https://images.unsplash.com/photo-1624953901718-e24ee7200b85?ixid=MnwxMjA3fDB8MHxwaG90by1wYWdlfHx8fGVufDB8fHx8&ixlib=rb-1.2.1&auto=format&fit=crop&w=870&q=80

Related Posts

Effect of BMI on Term Insurance Plan Premium
Finance

Effect of BMI on Term Insurance Plan Premium

May 24, 2023
Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks
Finance

Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks

April 26, 2023
  • Trending
  • Comments
  • Latest
Understanding the Difference Between an IRA Transfer and a Rollover

Understanding the Difference Between an IRA Transfer and a Rollover

July 13, 2020
Analysis paralysis in the investment business

Analysis paralysis in the investment business

September 17, 2020
5 Physical Investments to Prepare for a Barter Economy

5 Physical Investments to Prepare for a Barter Economy

January 18, 2022
How to Establish a Strong Pipeline of Investment Opportunities for a Small to Mid-Cap Investment Fund

How to Establish a Strong Pipeline of Investment Opportunities for a Small to Mid-Cap Investment Fund

June 6, 2022
Effect of BMI on Term Insurance Plan Premium

Effect of BMI on Term Insurance Plan Premium

0

HTML News Ticker

0

Why Business Is Grateful For Equipment Leasing and Financing and Asset Finance Solutions!

0

Benefits of Adding News to Your Website

0
Effect of BMI on Term Insurance Plan Premium

Effect of BMI on Term Insurance Plan Premium

May 24, 2023
Indices trading vs stock trading: What’s the difference?

Indices trading vs stock trading: What’s the difference?

May 15, 2023
Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks

Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks

April 26, 2023
Effortless Finances: Unlocking the Power of Remote Quality Bookkeeping

Effortless Finances: Unlocking the Power of Remote Quality Bookkeeping

April 29, 2023
Finance

Effect of BMI on Term Insurance Plan Premium

If the insured person passes away, a term insurance plan pays a one-time amount to the beneficiary stated in the ...

May 24, 2023
Trading

Indices trading vs stock trading: What’s the difference?

Indices trading and stock trading are two distinct types of financial investments, each with advantages and disadvantages. This article will ...

May 15, 2023
Finance

Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks

Cryptocurrency exchanges have become increasingly popular in recent years, providing investors and traders with easy access to a wide range ...

April 26, 2023
Finance

Effortless Finances: Unlocking the Power of Remote Quality Bookkeeping

Juggling multiple responsibilities, including bookkeeping, can be a daunting task for business owners. However, thanks to advancements in technology, remote ...

April 29, 2023
Loan

Best Way to Get Instant Loan Approval

A personal loan can be hugely advantageous in times of need or financial difficulty. Numerous lenders offer quick personal loan ...

March 31, 2023

Recent Posts

  • Effect of BMI on Term Insurance Plan Premium May 24, 2023
  • Indices trading vs stock trading: What’s the difference? May 15, 2023
  • Protecting Yourself from Fraudulent Crypto Exchanges: Tips and Tricks April 26, 2023
  • Effortless Finances: Unlocking the Power of Remote Quality Bookkeeping April 8, 2023
  • Best Way to Get Instant Loan Approval March 31, 2023
  • How long can I keep a CFD? March 29, 2023

Archives

  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • November 2019
  • October 2019
  • May 2019
  • May 2018
  • March 2018
  • US Markets
  • World Stock Market
  • Cryptocurrency
  • Economy

© 2020 Bleu Finance- All Rights Reserved.

No Result
View All Result
  • Bleu Finance
  • Let us help

© 2020 Bleu Finance- All Rights Reserved.

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In