Withdrawing funds from 401(k)s or IRAs before age 59½ triggers penalties and taxes that can cost you thousands. However, there are proper ways to access these funds penalty-free when done correctly.

Failing to update beneficiary designations means your ex-spouse could inherit assets intended for your children or other loved ones, regardless of what your divorce decree says.

Not reviewing or changing your investment allocations. Many accounts are transferred in-kind exactly as they were invested by your former spouse. Leaving those investments unaddressed can expose you to unintended market risk that doesn't match your new financial situation.

After the emotional toll of divorce, many people postpone creating a fresh financial strategy for their new life. However, establishing a new budget, savings plan, and financial habits early sets the foundation for long-term financial success and independence.