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Finances and divorce are, and always will be, linked

It's hard to talk about divorce and not talk about money and finances. These two subjects are inextricably tied, and when you go through a divorce, the topic of money, finances and assets will be incredibly important regardless of whether you and your soon-to-be-ex are amicable or not.

So when it comes to the subject of money and divorce, what are some things that you should be looking out for? What are some common mistakes that you should avoid? And, in general, how should you be looking at the whole process to make it as stress-free and efficient as possible? Let's break these questions down:

  • First of all, it's important to realize that you and your spouse are two people legally ending their marriage, so even if the two of you are amicable, there will likely be some discomfort in the proceedings, as well as two differing pools of thought as to how the assets should be divided. Recognizing this and acting respectfully can help expedite the process.
  • But don't be too quick to give up on your position. You need to be prepared and know which assets are worth fighting for and which ones you are willing to give up.
  • For example, the if you and your spouse have a house, you may instinctively think that you have to fight tooth and nail for it. But remember that the taxes and financial fees associated with a home could actually cost you more over the long haul than the asset is actually worth.
  • Taxes and other financial costs associated with divorce are important. Don't go into the process without understanding some of the extraneous costs you will have to deal with.

Source: Yahoo!, "Divorce and money: Six costly mistakes," Wall Street Journal, Veronica Dagher, May 18, 2015

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