Financial Mistakes to Avoid During Divorce

Over the years, I have advised many divorcing women on the financial aspects of divorce. While decisions and concerns about children are the biggest priority for divorcing parents, finances are one of the biggest factors in virtually all divorce situations.

All divorce cases are unique. With every case I see, there are individual financial considerations, wants, needs, and circumstances to consider. But there are some common threads that seem to repeat themselves.

Although this is not an exhaustive list, six common financial mistakes I see during divorces:

1. Underestimating Household Expenses
2. Not securing spousal/child support with insurance or other means
3. Disregarding tax consequences
4. Emotional attachment to assets
5. Not securing affordable health insurance prior to divorce
6. Using your lawyer as a financial planner

For a more thorough explanation of these mistakes and how to avoid them, see our blog post on the 6 Major Financial Mistakes During Divorce.

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Robert Henderson is the President of Lansdowne Wealth Management, an independent, fee-only advisory firm in Mystic, CT. His firm specializes in financial planning and investment management for retirement, with a special focus on the particular needs of women that are divorced or widowed. He is a Certified Divorce Financial Analyst^® and an Accredited Asset Management Specialist. Mr. Henderson can be reached at 860-245-5078 or bhenderson@lwmwealth.com. You can also view his personal finance blog, The Retirement Workshop at http://lwmwealth.com/blog and the firm’s website at http://www.lwmwealth.com.