You have made the decision to
divorce; you are entering into an emotional time of frayed nerve endings. With so many choices and decisions to make all you can think is, "I just want it over with, I want it to stop hurting, now!"
Rushing divorce proceedings is like putting a band-aid on a serious wound, the bandage covers it up for a while but the serious scar it hides will be with you for the rest of your life.
WHAT YOU DON'T KNOW CAN HURT YOU
"People often overlook the things that are so important to help make informed choices once they decide that divorce is inevitable," says Colorado Springs based
Certified Divorce Financial Analyst
Denisa Tova, one of the partners in the Divorce Resource Centre of Colorado. "Taking care of fairly simple things right away can save you a lot of financial heartache later," she continues.
THINGS YOU CAN DO RIGHT NOW:
- Gather financial documents
- Order a credit report from all three agencies right away
- Determine if you can afford to keep your home
SEVEN COSTLY MISTAKES TO AVOID WHILE PREPARING TO DIVORCE:
- Focusing on one issue such as keeping the martial residence at all costs
- Using historical spending data rather than forward thinking financial data to determine the post divorce budget
- Making financial decisions based on emotions rather than information
- Not considering the tax ramifications when dividing assets with differing tax characteristics
- Underestimating the value of retirement plans rather than seeking professional expertise to value retirement assets
- Failing to look at post divorce tax ramifications and cash flow
- Not having a QDRO (qualified domestic relations order) properly drafted and executed in a timely fashion
When divorce is inevitable, it's important to do your financial homework. If necessary, seek professional help from a divorce financial analyst who can help you avoid the financial pitfalls so common when emotions affect decision-making.
About the Author:
Denisa Tova, CFP®, CFDP™, ChFC, CLU provides divorce financial expertise to divorcing individuals. She is a Certified Financial Planner™ practitioner, Certified Divorce Financial Analyst, and a managing partner of
Divorce Resource Centre of Colorado, LLC.
Note: This was posted by Rosanne Gain, the publicist for the Divorce Resource Centre of Colorado (DRCC).
Denisa Tova, one of the DRCC partners, wrote this article.