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Planning to divorce? Avoid these mistakes

Going through a divorce is like running a long obstacle course, but if you make a mistake it could cost you more than time. Even a small misstep can cost you some serious money.

Unfortunately, due to the nature of divorce, you could find yourself under an extreme amount of stress and your emotions will probably be all over the map. It is these two factors that often lead people to make mistakes during the divorce process.

If you can keep your emotions in check and approach your divorce like a business transaction, you will have a better chance of coming through the process ready to start your new life. Also, knowing some of the most common divorce mistakes that people make can also help you to avoid them.

Avoid retail therapy

While it may feel good to go out and engage in some solid retail therapy, the middle of a divorce is not the time to go on a spending spree. While you may have been able to afford payment on a luxury automobile or never had a problem paying off a high credit card purchase in the past, you may find it a bit difficult after your divorce. Keep in mind that you will not longer have the income from your spouse to support the spending.

Don't cash in your portfolio to pay the bills

While it may seem like you have plenty of investments in your portfolio to help you float through a few months after your divorce, cashing these in may not be as simple as it seems. For example, if you sell stock that you have held for a long time and it has substantially increased in value, you could end up owing a significant amount in taxes. Hang on to your long-term financial goals during your divorce so that you do not find yourself short later on down the road.

Reconsider the house

If you went into your divorce with the goal of coming out with the house in Canton at any cost, you might want to reconsider. First, can you still afford the mortgage and the upkeep on the house without your spouse's income? What are the tax consequences of keeping the house versus selling it? Instead of basing your decision on sentimentality, look at your options from every angle and pick the one that makes the most financial sense for you.

If you want to get through your divorce with as little financial hemorrhaging as possible, it is vital to avoid the above mistakes. By focusing on your long-term goals and treating your divorce like a business transaction, you might be able to complete the process while retaining a relatively stable financial position.

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