This is the first in a two-part series on financial mistakes people make while going through a divorce. In the first part, I discuss the mistakes women make. Come back Friday for the second part - financial mistakes men make during divorce.
Men and women handle divorce differently, emotionally, and financially, though divorce is equally tough for both genders. Many people make costly mistakes while going through the divorce process, some of which they will live with for the rest of their lives and can threaten their financial futures.
This week, I want to discuss a few of the common errors that I see women make.
Talking To Their Spouse Before Filing for Divorce
The sooner your spouse knows that you’re filing for divorce, the more likely they are to possibly hide any positive financial news that you may not know about, such as any bonuses or improvements in your investments. Keeping quiet will allow you more time to gather as many financial documents as possible. Remember: mum’s the word on your divorce until you file so you can help ensure the best possible outcome.
Not Being Prepared With Documents
You should do everything in your power to understand your household’s true income. Try to round up as many financial documents as you can. If possible, get your hands on credit card statements, bank accounts, gifts from family members, bills, tax returns, one-time expenses, work expenses (such as any company car and gas allowance), and even future payments so you can paint the most accurate picture of your household expenses and income.
Having Unrealistic Expectations
Many women believe they will be able to maintain their current lifestyle, no matter the divorce settlement. What they don’t take into account is that the household income now has to pay for two mortgages/rents, two sets of bills, two sets of groceries, etc.
Other popular misconceptions about divorce include that the idea that whoever filed for divorce should pay for the entire divorce or that they should give up the house – both of which are untrue.
Though your lawyer will help you get the best settlement possible, you should have realistic expectations.
Folding Too Early
Though the divorce process can be extremely difficult at times, I can’t recommend enough not giving in to your emotions and folding too early because you just want to get it over with. Your lawyer has the confidence that you are entitled to everything you are negotiating for. A few weeks, months, or even years of fighting through your divorce case may well be worth a lifetime of having no regrets that you gave your case you are all. Your bank account and sanity will thank you.
This list includes just a few mistakes women make. There are many others, which is why seeking good professional help is so important.
I’ve had extensive experience with obtaining excellent, lucrative settlements for women. I had one female client who didn’t want to get a divorce, but her husband was cheating on her and she had to sadly admit her marriage was over. As part of her settlement, she received a beautiful 1920s, $10 million Florida mansion on six acres of beach land. She was so happy, she invited me and everyone else in our firm who worked on her case for a weekend at her gorgeous home.
If you want the best settlement possible out of your divorce and refuse to be taken advantage of, no matter your gender, please set up a consultation with me. Don’t worry – no Florida vacation is required for payment.