The Top 10 Financial Mistakes to Avoid During Divorce

By avoiding these mistakes, you can have a much smoother divorce process and protect yourself and your finances.

When you’re getting a divorce, you suddenly need to figure out your finances. Here are 10 financial mistakes to avoid during your divorce so that you can ensure you’ll have more financial security after your split.

1: Not Making a Budget

Your spending habits are going to change now that you’re getting divorced. It would be a huge mistake not to look into your expenses and make a solid budget.

2: Not Hiring a Divorce Lawyer

If you don’t hire a divorce lawyer, you could end up losing out on property that’s rightfully yours.

3. Keeping the Family Home

You should only keep the family home if you can actually afford it. If you can’t, then it’s time to sell it and downsize.

4. Not Planning for the Future

It’s critical not only to plan for today but for the future as well. Figure out your retirement plans when going through the divorce process.

5. Splitting Everything 50-50

A 50-50 split may not be the most equitable option. You should look at assets’ future values, for instance, to determine what’s truly fair.

6. Not Considering Unsecured Debts

You may be liable to pay off unsecured debts like credit cards, which means it’s best to try and pay off your credit cards before you officially get divorced.

7. Not Looking into Taxes

There are tax implications for your finances following your divorce. For example, how will receiving alimony affect your tax bracket?

8. Not Insuring Alimony or Child Support Payments

If you receive alimony or child support payments, they could disappear if your former spouse becomes disabled or ends up passing away. You can avoid catastrophe by setting up an insurance policy for payments.

9. Forgetting the Qualified Domestic Relations Order (QDRO)

The QDRO can be especially helpful in a divorce, like when you’re refinancing your home.

10. Not Contacting a Financial Advisor

While your lawyer is going to be knowledgeable, they won’t know how to guide you on every financial decision. A financial advisor could assist you with all things money.


Richard P. Arthur, Attorney at Law, can help you with your divorce. You can call 937-254-3738 for a consultation. He has nearly three decades of experience assisting clients in Dayton and Trotwood, as well as Montgomery, Greene, Miami, Clark, and Warren counties.