In 2012, Dr. Terri Orbuch, a research professor and
psychologist at the University of Michigan's Institute for Social Research,
conducted a study of divorced couples. In that study, 49% of the 373 divorced
couples who participated stated that fighting about money issues including poor
spending habits, lying about money and ignoring financial issues ultimately led
to their divorce. So it's no wonder that even during a divorce, couples
continue to make some of the same spending mistakes that often end up causing
long-term financial problems.
Let's take a look at some of the most common spending mistakes made during a divorce and also include tips on how you can avoid making the same mistakes. (And keep in mind that there are other costly divorce mistakes that actually have nothing to do with finances.)
Let's take a look at some of the most common spending mistakes made during a divorce and also include tips on how you can avoid making the same mistakes. (And keep in mind that there are other costly divorce mistakes that actually have nothing to do with finances.)
Spending Money You Won't Have After Your Michigan Divorce
This is an issue that is more common with women than men. Unfortunately, in situations where the soon to be ex-husband makes more income than the wife it can be financially devastating for her after the divorce. Women aren't prepared for life after the divorce and continue to spend and plan their life based on the financial situation they had when they were still married. If this situation sounds familiar, you have to stop unnecessary spending now! Even if you are granted spousal support it may not be nearly as much as you had access to before the divorce. You can quickly find yourself in major financial distress.
Sit down and create an “after divorce budget” eliminating or
lowering the amount you spend on things like entertainment and club
memberships. This is especially true if you will have sole custody
of children. It's not a good idea to depend on child support
either. You will most likely find life tougher financially because you will
have to live on just one source of income.
Before Contacting a Michigan Divorce Attorney Make Sure You Know What Your Expenses Are
This is one of the easiest spending mistakes to make during a divorce. Getting a divorce can easily put you on an emotional roller coaster which often means you make mistakes without thinking things through. If you have children it can be even worse.
Before Contacting a Michigan Divorce Attorney Make Sure You Know What Your Expenses Are
This is one of the easiest spending mistakes to make during a divorce. Getting a divorce can easily put you on an emotional roller coaster which often means you make mistakes without thinking things through. If you have children it can be even worse.
Let's say you decide you want to make your divorce go as
smoothly as possible and agree to pay for all medical expenses for your
children as well as educational expenses because your personal spending habits
are pretty low. So you know that you'll be able to afford the costs. But after
the divorce you realize you can't afford to do what you agreed to financially
in support of your children and end up dealing with long-term financial and
additional legal problems.
One way to avoid this is to sit down and figure out what your current living expenses are before you contact your attorney. List all current sources of income. Then list all of your expenses, everything from bills, mortgage or rent payments, taxes, entertainment, etc. This will give you a true picture of how much your personal expenses really are before you make legal commitments you may not be able to fulfill.
Spending Mistakes During Divorces in Mt. Clemens, MI
One way to avoid this is to sit down and figure out what your current living expenses are before you contact your attorney. List all current sources of income. Then list all of your expenses, everything from bills, mortgage or rent payments, taxes, entertainment, etc. This will give you a true picture of how much your personal expenses really are before you make legal commitments you may not be able to fulfill.
Spending Mistakes During Divorces in Mt. Clemens, MI
Money
mistakes happen in all divorces no matter where you live. Making big
purchases and running up credit card bills is another common mistake. In the
end, the judge in your divorce will declare all of that debt as a marital debt.
That means you and your spouse will be held equally responsible and ordered to
each pay half. That creates a financial problem after the divorce. You will be
living off of one income instead of sharing two but you'll have to pay off your
portion of the debt regardless.
The best way to avoid making this mistake during a divorce is simple. Don't go on a shopping spree. If you're like the average couple divorcing, you're already having financial problems. Imagine how much worse it's going to be for you when you have to foot the bill alone.
We've covered a few of the most common spending mistakes couples make during a divorce. Avoid making the same mistakes and you'll find yourself in better shape financially in both the short and long term.
The best way to avoid making this mistake during a divorce is simple. Don't go on a shopping spree. If you're like the average couple divorcing, you're already having financial problems. Imagine how much worse it's going to be for you when you have to foot the bill alone.
We've covered a few of the most common spending mistakes couples make during a divorce. Avoid making the same mistakes and you'll find yourself in better shape financially in both the short and long term.
Contact Femminineo Attorneys, PLLC to schedule your free initial consultation,
get Michigan divorce help, and discuss your situation.
Femminineo Attorneys
Michigan Divorce Help
110 S Main St #200
Mt Clemens, MI 48043
United States
(586) 954-9500
http://www.michigandivorcehelp.com/
Femminineo Attorneys
Michigan Divorce Help
110 S Main St #200
Mt Clemens, MI 48043
United States
(586) 954-9500
http://www.michigandivorcehelp.com/
