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3 financial mistakes to avoid during a divorce

New Jersey actually has one of the lowest divorce rates in the country. According to a 2016 article in The New York Post, the only states that have fewer divorces than New Jersey are Wisconsin, Rhode Island and Delaware.

With that being said, plenty of couples still deal with divorce in the Garden State. In fact, many couples end up spending more money than they should on the process. No matter how wealthy some couples may be, they still need to keep an eye on finances. Here are three common mistakes people should avoid making when going through this difficult process.

1. Not considering mediation

Mediation is the process of two spouses sitting with a neutral third party and talking about the various aspects of separation. During these meetings, the couple can determine how they want to split assets or share custody of children. It is much easier and much more affordable to work out some issues in mediation rather than in a courtroom. Any couples considering divorce should at least think about mediating through their problems to try to cut back on costs.

2. Not budgeting appropriately

Both spouses should already know how much income they each bring in. When separating, they both should determine how much they need to spend each month on regular expenses as well as attorney fees and potentially rent on another residence. Both parties need to figure this out before delving deep into divorce proceedings.

3. Getting too emotionally attached

It is understandable for people to become attached to houses and other assets. Perhaps two spouses jointly acquired a painting during the marriage and now they have to decide how to split it. It is all right for people to fight for what they want, but emotions should not trump sound reasoning. For example, one spouse may love a house but lack the independent income necessary to continue paying property taxes. It is vital to be realistic during this time.

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