New Jersey couples facing divorce often have a tough time. The process takes an emotional and financial toll on both spouses. And one of the stickiest situations during a divorce is splitting assets. When you’re divorcing, think carefully about your financial decisions. Here are some financial mistakes to avoid during your divorce.
Failing to financially secure your child’s education
If you have a child (or children), remember to plan for their educational expenses. Who will cover the cost of private school or college? If money is put aside for education, which spouse controls the account? Make sure to discuss this issue.
Keeping the family home when it’s unaffordable
It’s understandable that you love your home. And you might want to stay there because it’s comfortable and where you’ve made your life. However, stop and think about if you can afford it. Can you handle the mortgage, property taxes and maintenance without help? Your emotional attachment to the home has to take a backseat. The same is true when dealing with any divorce property division.
Leaving your spouse as a beneficiary
Do you have a retirement account or life insurance policy? If yes, then your spouse is likely a beneficiary. Unless you want your ex-spouse to benefit from these accounts, update the information as soon as possible. It’s possible for an ex-spouse to receive benefits while the current spouse receives nothing. All because of failing to change beneficiary designations. This is one financial mistake that’s easy to overlook, but you definitely want to avoid.
Ignoring health insurance
Do you have health insurance under your spouse’s work benefits? You’ll want to make sure you have access to health insurance after the divorce. If your employer offers coverage, you might want to enroll in the plan. You’ll also want coverage for your child. Discuss health insurance during your divorce proceedings.
You’ll face several financial decisions during your divorce. And the decisions you make during this time will affect your future. Do your best to make wise decisions and receive a financial settlement that’s fair.