Divorce is a difficult process. From navigating through the emotional turmoil of an ending relationship to attempting to split finances, divorce can be overwhelming. Whether a divorce is contentious or not, it can be easy for couples to fall into the "money grab" trap. Although coming out of the divorce with the larger chunk of money in the present may feel like a win, it could lead to financial insecurity in the future.
The issue was recently addressed in an article by The Wall Street Journal. In the piece, the author notes that one of the most common financial pitfalls in a divorce can be the family home. It is tempting to fight to keep this piece of property, particularly if children are present. The desire to offer children some sense of stability can be overwhelming and may overshadow the negative financial impact this decision could have. Before fighting for the home, carefully consider the implications. Can you afford monthly mortgage payments on one income? Can you afford the taxes along with maintenance and upkeep? What about unforeseeable expenses, like a broken furnace or leaky roof?