Seven Costly Financial Mistakes Women Make in Divorce — and How to Avoid Them
Divorce can shake your foundation — emotionally, legally, and financially. Even if you’re the one initiating the process, it’s easy to feel blindsided when money becomes part of the negotiation. And unfortunately, what you don’t know can hurt you.
The good news? With the right support, you can avoid many of the most common — and costly — mistakes. Here’s where to start:
1. Going in Blind
You need a full picture of your finances — everything you own, everything you owe, and what it’s all worth. Gather tax returns, bank and retirement statements, loan balances, and employment benefits. Know what’s titled jointly vs. separately. You can’t make smart decisions without complete information.
2. Assuming You Can Keep the House
It’s emotional — it’s home. But the home comes with real costs: mortgage, taxes, repairs, utilities. If it stretches your budget or drains your savings, it may not be worth it. Don’t sacrifice your financial stability for sentimental reasons.
3. Underestimating the Power of Tax Consequences
A dollar isn’t always a dollar. A $100,000 retirement account and $100,000 in equity aren’t equal once taxes enter the picture. This is where a tax-savvy divorce professional makes a real difference.
4. Letting Emotions Drive Legal Costs
Venting to your attorney or dragging out negotiations to “win” can backfire. Remember — your attorney bills by the hour. Use a therapist for emotional support and a financial expert for the numbers. Keep your legal strategy focused.
5. Settling Without Running the Numbers
Before you sign anything, understand how the settlement will impact your life five years from now. What will your budget look like? Will your income cover your needs? Will you be able to retire? A Certified Divorce Financial Analyst (CDFA®) can help answer those questions.
6. Fighting Over Everything
Litigation is expensive — emotionally and financially. If you can avoid court, do it. Mediation or collaborative divorce can save time, money, and energy — especially if children are involved.
7. Going It Alone
You don’t have to become a financial expert overnight — but you do need guidance. The right support can prevent mistakes that could cost you thousands. My role as a money coach and tax advisor is to help you make smart, informed decisions that protect your future.
You deserve clarity. You deserve peace of mind. And you don’t have to do this alone.
NOT LEGAL OR TAX ADVICE: This information is for general informational purposes only and does not constitute legal advice or tax advice. It is not intended to be a substitute for professional legal or tax advice. You should seek the advice of a qualified attorney or tax professional for advice, support, and/or services tailored to your specific facts and circumstances. This communication does not create an attorney-client relationship, nor is it a solicitation to offer legal advice. IDFA and its representatives make no warranties about the information contained herein and assumes no responsibility for errors or omissions in the content or for any actions taken based on the information provided.
IRS CIRCULAR 230 NOTICE: To ensure compliance with the requirements of IRS Circular 230, we inform you that any U.S. tax advice contained in this communication or any of our materials is not intended or written to be used and cannot be used for the purpose of avoiding penalties under the Internal Revenue Code or for promoting, marketing or recommending to another party any transaction or matter addressed in this communication or attachment.
