Everybody makes mistakes from time to time. But with major life events like divorce, you cannot afford to be careless or short-sighted. A serious error can cost you, both financially and emotionally.
Here are four of the biggest mistakes people in the Dublin area can make when getting divorced.
Not planning for change
Many people assume that, once they are divorced, their financial situation will stay pretty much the same for the foreseeable future. They do not consider that they might lose their job, go through a medical crisis, or lose their home to a natural disaster. A well-negotiated financial settlement will help shield you against future risk, however unlikely those risks may seem today.
Being unrealistic about your post-divorce lifestyle
Similarly, many people going through divorce convince themselves that their lifestyle will not be affected much. They think they will be able to afford to keep the home and take the same number of expensive vacations as they used to. They have to learn that the loss of one source of household income is going to have an impact, at least for a while. For example, it may not be realistic to keep the house on your own unless your ex agrees to help with the mortgage payments.
Not educating yourself about finances
In many marriages, one spouse handles all the financial matters. When the couple gets divorced, the spouse who never learned about such basic things as making and keeping a budget could quickly get into debt. Everyone should know what their bank and retirement balances are, as well as their monthly expenses. But it’s especially critical when you are on your own and nobody is there to help you.
Not getting the details nailed down
Both you and your ex should be crystal clear about what each of your responsibilities is. Who will pay for the children’s medical care? How will their college tuition be handled? It can be exhausting to go over these details, but they are critical.