Here are the most common mistakes that I see people make in divorce.
Number one: one spouse generally wants to keep the business or a pension plan, and the other generally want to keep the marital home. Because of the differences in the valuation of those assets, it does not work out very well.
Secondly: many times, because of the two households created out of one, with the same income coming in, the couple goes into debt. And both spouses generally do not want to reduce their debts as they’re going through a divorce, be it an emotional issue or be it because they just want to maintain the same standard of living they’re accustomed to.
And lastly, people make many mistakes because they are emotionally attached to a particular asset. It can be an antique in a home, a statue, or a vehicle. And that often runs up the cost of the divorce, to the detriment of both parties.
Paul J. Toohey is a Certified Financial Planner CFP® and, Certified Divorce Financial Analyst CDFA™. He is a member of Collaborative Divorce Solutions, a Collaborative Divorce Group located in Orange County, California.