Divorce can be emotionally difficult and if you are not cautious, it can hurt your economic future. If you are going through a divorce, you should make every effort to avoid the following five common financial mistakes that can cost you a lot of money and leave you in a bad financial situation in the future.
1. Becoming House Poor. Often times, the family house gets kept by one spouse after the divorce. Whether you would like to keep the house because of your children or because you are simply attached to it or have invested money into it over the years, you should make sure you can comfortably afford to keep possession of your home. You may find that paying the mortgage and maintaining the house on your own will make you house poor and unable to afford the lifestyle you would like.
2. Thinking Short Term. It is common for divorcing couples to focus their attention on short-term problems and benefits rather than thinking long term. By thinking about how every financial decision you make in your divorce will affect you in 5, 10, 15, and 20 years, you can reduce your risk of making a mistake.
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