Avoid these common (and costly) mistakes while navigating your next chapter
Divorce is emotional. It’s overwhelming. And for many women, it’s the first time they’ve had to fully step into the financial side of their lives.
When everything feels uncertain, it’s natural to want to act quickly—to protect yourself, regain control, or simply make the stress stop.
But here’s the truth:
Some of the most damaging financial decisions made during divorce aren’t intentional—they’re reactive.
Let’s walk through what to avoid, so you can move forward with clarity and confidence.
1. Don’t Make Big Financial Moves Out of Emotion
It can be tempting to:
- Empty accounts
- Make large purchases
- Sell assets quickly
- “Claim” money before your spouse does
But acting out of fear or anger can:
- Complicate legal proceedings
- Damage your credibility
- Lead to long-term financial setbacks
A better approach: Pause before making any major financial decision. A well-timed, strategic move is always more powerful than a reactive one.
2. Don’t Assume “50/50” Means Fair
A common misconception is that everything will simply be split down the middle.
In reality, a fair settlement depends on:
- The type of assets
- Tax implications
- Income differences
- Long-term financial needs
For example, $100,000 in a retirement account is not the same as $100,000 in cash.
A better approach: Focus on equitable outcomes, not just equal splits.
3. Don’t Fight to Keep the House Without Running the Numbers
The house is often the most emotional asset in a divorce—and the hardest to let go of.
But keeping it without fully understanding the cost can lead to:
- Being house-rich but cash-poor
- Struggling with maintenance, taxes, and upkeep
- Delayed financial recovery
A better approach: Look at the full picture—monthly costs, future goals, and what your life will realistically look like post-divorce.
4. Don’t Ignore Debt
Debt doesn’t disappear just because a marriage ends.
And even if a divorce decree assigns debt to your spouse, creditors may still hold you responsible if your name is on the account.
A better approach:
- Know every debt tied to your name
- Work toward closing or refinancing joint accounts
- Protect your credit early in the process
5. Don’t Overlook Tax Consequences
Taxes are one of the most commonly missed (and most expensive) pieces of a divorce settlement.
Things like:
- Retirement account withdrawals
- Selling the home
- Filing status changes
- Alimony (depending on your agreement)
…can all carry significant tax implications.
A better approach: Evaluate the after-tax value of every decision—not just the surface numbers.
6. Don’t Try to Navigate It Alone
Even highly capable, successful women can feel out of their depth during divorce—especially if they weren’t the primary financial decision-maker.
Going it alone can lead to:
- Missed opportunities
- Costly oversights
- Settlements that don’t support your long-term future
A better approach: Build a team that supports you—financially, legally, and emotionally.
7. Don’t Lose Sight of Your Future
It’s easy to get caught up in “winning” the divorce.
But the real goal isn’t winning—it’s walking away with a solid foundation for your next chapter.
Short-term decisions made to “get through it” can impact:
- Retirement
- Lifestyle
- Financial independence
A better approach: Make decisions with your future self in mind.
Final Thoughts
Divorce is a major life transition—but it’s also a turning point.
Avoiding these common financial missteps can mean the difference between feeling stuck… and stepping confidently into what comes next.
You don’t have to have all the answers right now.
You just need the right guidance—and a plan.
This material is provided for general and educational purposes only and is not intended as tax advice. Please consult your tax advisor for advice regarding your personal tax situation.
Philip Lockwood | Founder
Address | 1501 Ingersoll Ave Ste 201 Des Moines, IA 50309
Phone | 515-274-8006
Email | hello@empowereddissolution.com
Website | www.empowereddissolution.com
