When you realize that it’s time to put an end to your marriage, you need to get all of your ducks in a row before making a move. Find all of your important documents, figure out your financial situation and consult with your divorce attorney. Once you are ready to file for divorce in Massachusetts, you need to ensure that you do not make any of the money mistakes discussed in today’s post.
One of the biggest mistakes you can make is avoiding the change in your financial future that occurs with divorce. You are going from likely two incomes down to one. You will need to create a strong budget and then stick to it in order to live on your own.
Another mistake is waiting too long to separate the finances of you and your spouse. You need to split the savings accounts, checking accounts, change account passwords and much more as soon as possible. It’s also a good idea to check your credit report every so often to ensure nothing new is on it.
It’s a bad idea to make big financial decisions while you are going through a divorce. This includes buying a new home, buying a car, buying art and anything else expensive. Try to avoid making emotional decisions about your finances.
Hiding money or other assets in a divorce is never a good idea. You are risking potential time in jail when hiding assets. You should never attempt this as the assets can easily be found by investigators.
This was not an exhaustive list of money mistakes that can be made during a divorce, but be sure these do not happen during your divorce. You want to ensure that you hold onto as much money as possible because you will need to adjust to living on one income in Salem.
Source: Reader’s Digest, “15 Money Mistakes to Avoid During a Divorce,” accessed April 27, 2018