Learn from the common missteps people make during the divorce process in five crucial areas: lifestyle, taxes, the family home, legalities, and insurance.
Understand the realities of post-divorce finances and adjust your lifestyle accordingly. Communicate with your children about the changes and set realistic expectations.
Seek professional help to navigate complex tax implications during property settlement. Consider the different tax treatment of assets like retirement accounts and brokerage accounts.
The family home
Don’t hold onto the family home out of emotion without considering affordability and opportunity costs. Avoid immediate refinancing and explore cost-saving options.
Ensure proper execution of a Qualified Domestic Relations Order (QDRO) to divide retirement accounts post-divorce. Update estate planning documents and beneficiary designations promptly.
Verify that spousal support and child support are adequately insured upon the payor’s death or disability. Confirm the status of insurance policies annually and remain informed as the named beneficiary. Build a strong support team to guide you through the process and minimize major blunders for a smoother path ahead.