The Top 7 Financial Mistakes People Make After Divorce
Divorce is emotionally draining, and that stress often leads to money mistakes. Avoiding these common pitfalls can save you thousands and help you rebuild faster.
1. Keeping the Marital Home at All Costs
It feels like security, but it can also be a financial trap if expenses exceed your income.
Tip: Crunch the numbers before committing.
2. Not Updating Beneficiaries
Leaving an ex as a life insurance or retirement account beneficiary can create unwanted outcomes.
Tip: Review all accounts and update immediately.
3. Ignoring Joint Debts
Joint credit cards or loans can affect your credit if not properly separated.
Tip: Close or refinance joint accounts quickly.
4. Underestimating Living Expenses
Many people forget how much solo living costs.
Tip: Create a budget based on actual expenses, not guesses.
5. Failing to Save or Invest
Focusing only on immediate bills can delay financial recovery.
Tip: Automate even small savings.
6. Relying Solely on Verbal Agreements
Verbal agreements about shared expenses can create conflict.
Tip: Document everything legally.
7. Not Seeking Professional Guidance
Trying to handle everything alone can lead to costly oversights.
Tip: Work with a financial coach who understands post-divorce challenges.
Final Thoughts
By avoiding these mistakes, you’ll shorten the time it takes to regain financial independence.
Want to avoid these mistakes?
