{"id":256861,"date":"2025-06-08T09:01:04","date_gmt":"2025-06-08T09:01:04","guid":{"rendered":"https:\/\/dominiclevent.com\/blog\/?p=256861"},"modified":"2025-06-08T09:01:04","modified_gmt":"2025-06-08T09:01:04","slug":"the-top-5-mistakes-people-make-in-a-divorce-that-cost-them-thousands","status":"publish","type":"post","link":"https:\/\/dominiclevent.com\/blog\/the-top-5-mistakes-people-make-in-a-divorce-that-cost-them-thousands\/","title":{"rendered":"The top 5 mistakes people make in a divorce that cost them thousands"},"content":{"rendered":"\n
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Getting divorced can be an expensive experience, but experts warn that many don’t realize the hidden traps that can rack up the bills.<\/p>\n

The average cost of a divorce in the US is a staggering $11,300, with lawyers’ fees making up the bulk, according to personal finance site The Motley Fool.<\/p>\n

However, a marriage split is not just a one-off expense; there are often long-term implications too.<\/p>\n

Many women in particular are at risk of ending up worse off\u00a0after divorce<\/a> \u2013 especially if they have taken time off work to raise a family.<\/p>\n

Yet both men and women can end up regretting financial mistakes made during the sound and fury of splitting up.<\/p>\n

‘People making such mistakes often regret it long term, because they can be irreversible,’ divorce lawyer\u00a0Bari Weinberger told the Wall Street Journal<\/a>.<\/p>\n

Experts argue it is important to be prepared and ensure you are completely informed about your financial situation.<\/p>\n

These are the top five mistakes they urge those embarking on a divorce to avoid.<\/p>\n

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The average cost of a divorce in the US is a staggering $11,300<\/p>\n<\/div>\n

1. Heavy spending<\/h2>\n

One of the most common mistakes new divorcees make is splurging right after the papers are signed.<\/p>\n

Some take their settlements and throw a ‘divorce party’, or\u00a0indulge in retail therapy after months or even years of acrimonious legal wrangling.<\/p>\n

Common post-divorce purchases include new cars that become unaffordable on finance plans.<\/p>\n

Another mistake is rushing to buy a new home too quickly, according to divorce coach Liza Caldwell.<\/p>\n

Caldwell tells her clients to wait for their lives and especially their finances to stabilize before buying a new property.<\/p>\n

Caldwell told the Journal that those rushing a fresh start can end up overpaying, or tie up too much of their money in their home while reducing flexibility elsewhere.<\/p>\n

However, costly spending mistakes can also occur just before a marriage fails.<\/p>\n

Weinberger warns that committing to expensive vacations or new joint debts such as a mortgage on a new home can complicate their process of dividing marital assets during divorce.<\/p>\n

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Divorce coach Liza Caldwell advises clients not to buy a new home too quickly<\/p>\n<\/div>\n

2. Hidden assets<\/h2>\n

Some spouses will hide assets before they ask for a divorce<\/a> in order to gain more from the overall settlement.<\/p>\n

A common tactic is giving money to friends and family on the understanding that it will be returned after the divorce is settled.<\/p>\n

Florida accountant\u00a0Mirtha Valdes Martin told the Journal that she has frequently seen small business owners use this tactic to avoid a fair settlement.<\/p>\n

Martin said that one way to avoid becoming the losing party is to file for divorce first.<\/p>\n

Those who suspect their partner may be hiding assets can also seek a settlement that includes\u00a0even division of assets discovered after the divorce is complete.<\/p>\n

There is also the option to hire a private investigator or a forensic accountant to get to the bottom of any suspicions.<\/p>\n

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Many women in particular are at risk of ending up worse off after divorce<\/p>\n<\/div>\n

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New Jersey divorce lawyer Bari Weinberger says divorcees can regret their financial mistakes<\/p>\n<\/div>\n

3. Emotion bills<\/h2>\n

Divorce can be a painful time but experts warn that allowing your emotions to prolong proceedings can rack up ever larger bills.<\/p>\n

Maggie Kim, author of the\u00a0‘Divorce or Die’ newsletter, told the Journal that\u00a0she spent $500,000 on legal fees over a seven-year divorce process.<\/p>\n

‘Emotions were the biggest reason that my divorce and custody fight took seven years,’ she explained.<\/p>\n

Now Kim tells her readers to draw on support from their friends and family rather than treating divorce lawyers like therapists.<\/p>\n

You won’t feel better\u00a0‘when you get a five-figure bill later because you spent two hours sobbing in their office \u2014 again,’ Kim said.<\/p>\n

4. Illiquid assets<\/h2>\n

Illiquid assets such as\u00a0stock options, individual retirement accounts and real estate, can be among the hardest parts of a divorce to settle.<\/p>\n

This is because by their very nature they cannot easily be turned into cash and split evenly.<\/p>\n

Selling stocks can stop an investment from growing over time and incur heavy transaction fees.<\/p>\n

Retirement accounts can also incur heavy penalties if withdrawn before retirement age<\/a>.<\/p>\n

Financial advisor Stacy Francis told the Journal she asks divorcing couples to take all of these constraints into account when deciding how to divide their marital assets.<\/p>\n

For example, if illiquid assets are too big of a sum to be able to give up a claim to them completely, then\u00a0‘it may indeed be worth waiting until they vest, mature or are able to be sold,’ Francis explained.<\/p>\n

‘Negotiating for structured payouts or even a co-ownership agreement can be a creative workaround.’<\/p>\n

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Maggie Kim spent $500,000 on legal fees over a seven-year divorce process<\/p>\n<\/div>\n

5. Underestimating expenses<\/h2>\n

Couples who have been together decades can often forget a time before two incomes.<\/p>\n

Individuals going through a divorce may therefore underestimate how much it will cost to run a household alone again.<\/p>\n

Major expenses can include housing and health insurance, as well as discretionary spending such as restaurant meals and subscriptions.<\/p>\n

Rick Jones, a divorce lawyer from Seattle, told the Journal that his male clients can often misjudge the cost of both child support and running their own home.<\/p>\n

‘Fathers paying full or partial child support don’t anticipate the additional cost of having a home big enough for their kids’ visits,’ he said.<\/p>\n

To avoid financial pitfalls later on, Jones urges divorcing couples to make realistic budgets setting out what cash-flow they will need to cover their expenses.<\/p>\n<\/div>\n\n

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