Most Common Financial Mistakes Made During Divorce

 Posted on February 21, 2026 in Finances and Divorce

Divorce is both a personal and a financial turning point. Unfortunately, many people make financial decisions during divorce that hurt them long after the case is over. But you don’t have to. If you are aware of the common financial pitfalls during and after a divorce, you are much less likely to find yourself dealing with them. 

Below are some of the most common mistakes people make with their money during a divorce. Between knowing these and getting professional help from a DuPage County divorce attorney, you can stay financially on track.

Top Four Financial Mistakes People Make During Divorce

Divorcing Spouses Make Emotional Decisions About Their Finances

It is completely understandable to feel hurt, angry, or betrayed during a divorce. But when those feelings start driving financial choices, the cost adds up fast. It’s common for one spouse to dig their heels in on every issue just to make the process harder for the other person. Others overspend after the split. This could be because they feel free at last to buy things without their partner’s input. It can also be a way of coping with the stress or emotional let-down of the divorce. 

Both of these can be financially damaging. Drawn-out litigation over minor issues can run up significant legal fees. Post-divorce spending on vacations, new electronics, or hobbies can quickly deplete savings that you will need to start your new life. Taking stock of your budget early and sticking to it matters more than most people realize.

Not Thinking About the Long-Term Costs of Keeping the House After Divorce

One of the biggest financial mistakes divorcing spouses make is fighting to keep the marital home without thinking through what that really means. The house may feel like stability, but it comes with large ongoing costs that are much harder to manage on a single income.

Before deciding to keep the home, ask yourself:

• Can you afford the mortgage payment alone?
• Can you cover property taxes, insurance, and normal maintenance costs?
• Can you cover a large repair or catastrophic damage to things like the plumbing or the roof?
• Will keeping the house require you to give up other marital assets, like retirement savings?
• Is the home's value likely to go up or down in the near future?
• If you plan to sell it soon, will you make a profit after realtor and closing fees?

Under 750 ILCS 5/503, Illinois courts divide marital property based on what is equitable. The house is part of a larger financial picture, and you may have to trade a lot of other assets for the property division to be considered fair by the court. Giving up significant retirement savings or investment accounts in exchange for the house can leave you financially worse off in the long run, even if it feels like a win right now.

Overlooking the Hidden Financial Costs of the Divorce Itself

People tend to focus on the big-ticket items – the house, the retirement accounts, the business – and overlook some of the smaller costs that pile up during a divorce. These can include:

• Filing and court fees
• Fees for financial professionals, such as appraisers or forensic accountants, if there are complex assets
• Fees for child specialists if you consult with to work out your custody plan
• Costs to retitle or transfer property after the divorce finalizes
• Tax consequences of dividing retirement accounts or selling the family home

There are many legal hoops to jump through that directly impact your finances. If you receive retirement account funds through a divorce without using a Qualified Domestic Relations Order (QDRO), for example, you could have unexpected tax penalties. Understanding these details before you agree to a settlement can save you a significant amount of money.

Trying to Handle Everything Without Legal Help

People may see the costs of attorneys, financial professionals, court fees, and other costs adding up and decide their wallet can’t handle it. It will be better, they think, to do a lot of research and try to manage their case on their own. This is a very good way to make mistakes that end up being very expensive in the long run. Even in what seems like a straightforward case, many important mistakes can be made that are hard to undo once a judgment is entered.

Some couples find that working with a mediator or pursuing a collaborative divorce helps them reach agreements without the cost of full litigation. These are good options in many cases. But even in a collaborative or mediated divorce, having a lawyer review any agreement before you sign protects your interests and makes sure nothing important is missed.

Call a Wheaton, IL Divorce Attorney Today

The financial decisions you make during your divorce will affect you for years to come. Do your future self a favor and get help from a DuPage County divorce lawyer so you can get the best settlement possible in 2026.

At Andrew Cores Family Law Group, Attorney Cores is a Fellow for the Collaborative Law Institute of Illinois and a past member of its TEC Committee. He offers free consultations and is ready to help clients understand their options and avoid costly mistakes. Call 630-871-1002 today to schedule.