Top Financial Mistakes Divorcees Make

  • Keeping a house they cannot afford without understanding the trade-offs
  • Not realizing the need to receive six months of maintenance/alimony before using it to qualify for a mortgage
  • Not budgeting or adjusting their lifestyle to their post-divorce income level
  • Failing to close joint credit cards and loans
  • Not properly executing a QDRO (Qualified Domestic Relations Order)
  • Not changing their beneficiaries and estate planning documents
  • Not understanding they need to be married 10 years to qualify for ex-spouse’s social security benefits
  • Not protecting maintenance and child support with disability insurance as well as life insurance
  • Not understanding why some assets that are valued the same are not equivalent in their worth
  • Paying tax on maintenance that was specifically not taxable in the MSA
  • Not calculating the basis and taxable gain of securities
  • Not addressing how a tax refund will be split
  • Not appropriately addressing with their children how the finances will change
  • Not negotiating for a split of miles and hotel points