4 Divorce Mistakes to Avoid with Money
Christine M Luken
Helping six-figure business-owning couples manage money & emotions to achieve lasting Financial Dignity?
Divorce is among the top three most stressful life events we can encounter. Because it’s such an emotional time, it can be challenging to make wise money decisions as we move through divorce. Here are the top 4 money mistakes I see divorcing people make, and how to steer clear of them.
>> Listen to the podcast episode HERE. <<
Mistake 1: Using Money as a Weapon
This happens when a person feels like they need to punish their ex-spouse, perhaps because he or she was having an affair. This manifests as reckless spending, unreasonable demands, and acting from a place of anger. This is the FIGHT response to perceived danger.?
Mistake 2: Giving Away the Store
When someone makes this mistake, they’ll agree to anything their ex demands, just to get the divorce behind them. Chances are they're tired of fighting, dislike conflict and disagreement, and just want to move on with their life. This is the FLIGHT response to stress.?
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Mistake 3: Deer in the Headlights
This happens when the person feels paralyzed and is unwilling (or unable) to take productive action. This usually is a result of feeling either overwhelmed or confused. This is the FREEZE response to stress and can be worse than fight or flight.?The person might be in a state of shock or denial. But refusing to make a decision IS a decision. This delay can force them into an unfavorable course of action by default.
Mistake 4: Not having someone on your “Money Team” to help you.
We immediately think of retaining an attorney to help us through a divorce. But most attorneys are legal experts, NOT financial experts. It’s helpful to have BOTH legal and financial advice to navigate through this transition. It could be a financial planner, CPA, money coach, or a combination of the three. Just make sure they have experience and education in helping clients with divorce. (I’m a Certified Divorce Specialist?, which means I receive ongoing training about the subtleties of divorce in the legal, financial, mental health, and real estate arenas.)
If you or someone you know is going through a divorce,?please share this podcast episode with them! I go into more depth on each of these mistakes and give wise advice on how to prevent them!
Financial Planner | Guiding women entrepreneurs & executives to build financial freedom, reduce taxes & make confident money decisions | Financial Wellness Speaker
1 年I agree that money decisions during divorce can be tough. Creating a money team of professionals to support decision-making and avoiding emotional money behavior are musts. Thanks for sharing these practical tips.
Killer B2B Fintech copywriting and marketing strategies (I generate new leads and revenue for B2B Fintech companies)
1 年Out of curiosity, how often do you see people using money as a weapon during divorce, Christine Luken?
Creating Blueprints to Financial Independence for Entrepreneurs & Tech Executives / Founder & Financial Planner
1 年Great discussion to have these days!
CRS, SFR short sales, CDP Divorce Real Estate Agent at Keller Williams Realty, Inc.
1 年I completely agree with you that having a clear understanding of your financial standing is crucial. Making impulsive decisions without adequate information can lead to significant costs. As a real estate professional and a Certified Divorce Specialist?, I continuously receive training on the nuances of divorce in various domains, such as legal, financial, mental health, and real estate. This enables me to assist my clients with well-informed decisions that align with their real estate/financial goals.