Costly Mistakes Common in Divorce Settlements shares the expertise of financial planners and analysts in an article titled Divorce and Your Finances – The 7 Most Costly Mistakes.

The article serves as a good reminder of some of the more subtle pitfalls to watch out for in negotiating settlements, such as:

  • Mistake #1: Not Knowing the Liquidity of Assets
  • Mistake #2: Failure to Consider the Impact of Taxes
    1. Capital gains
    2. Income taxes
  • Mistake #3: Not Understanding the Rules of Retirement Accounts
  • Mistake #4: Overlooking Debt and Credit Rating Issues
  • Mistake #5: Not Maintaining Control Over Insurance Policies
  • Mistake #6: Failure to Budget
  • Mistake #7: Failure to Identify Hidden Assets

    1. Tax returns
    2. Business owner tactics
    3. Checking account statements
    4. Savings accounts statements
    5. Brokerage statements
    6. Expense accounts
    7. Children’s bank accounts