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Top financial mistakes to avoid when divorcing

There are numerous financial considerations to make for any divorce. For couples planning to divorce in 2018, it may work in their best interest to finalize the separation before the end of 2018 due to a provision in the Tax Cuts and Jobs Act, which prevents a person paying alimony from deducting those payments from his or her taxes. 

There is no way to have a free divorce, but you can drastically reduce the amount of money you spend. You do not want to become a financial victim, so here are some actions you should avoid to keep from making the divorce harder on your wallet and your peace of mind: 

Not creating a budget

You will spend more money while the divorce is in process, so you want to create a budget to adequately pay for a lawyer's services in addition to mortgage payments, car payments and other necessities. You can utilize the services of a financial professional to help you create an accurate budget if you have trouble on your own. 

Trying to punish your spouse

No matter what your spouse did to cause the divorce, you need to get through this time quickly with your assets as intact as possible. If you try to punish your ex-spouse, then you will spend more time in court and lengthen the process. You should have your attorney simply find a way a fair, amicable resolution. 

Becoming emotionally attached to assets

No matter how much you love the house you shared with your spouse, it may be best to sell it and divide the money. You may not be able to pay the mortgage on your own once the divorce is final. This plays a significant part in developing a post-divorce financial plan. 

Ignoring tax impact of divorce settlement

Even if an initial settlement seems fair, you also need to consider the taxes associated with any assets you receive. You will want a tax professional to review the settlement to determine if it is good in the long run before you agree to it. 

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