diff --git a/client/asset/dcr/rpcwallet.go b/client/asset/dcr/rpcwallet.go
index b0565e9dde..61605f56c3 100644
--- a/client/asset/dcr/rpcwallet.go
+++ b/client/asset/dcr/rpcwallet.go
@@ -149,7 +149,8 @@ func newRPCWallet(cfg *Config, chainParams *chaincfg.Params, logger dex.Logger)
 		log:         log,
 	}
 
-	certs, err := os.ReadFile(cfg.RPCCert)
+	cert := dex.CleanAndExpandPath(cfg.RPCCert)
+	certs, err := os.ReadFile(cert)
 	if err != nil {
 		return nil, fmt.Errorf("TLS certificate read error: %w", err)
 	}
diff --git a/client/cmd/dexc/config.go b/client/cmd/dexc/config.go
index 4c53d99a99..0df95dfb71 100644
--- a/client/cmd/dexc/config.go
+++ b/client/cmd/dexc/config.go
@@ -151,9 +151,11 @@ func configure() (*Config, error) {
 		}
 	}
 
+	cfgPath := dex.CleanAndExpandPath(preCfg.Config)
+
 	// Load additional config from file.
 	parser := flags.NewParser(&iniCfg, flags.Default)
-	err := flags.NewIniParser(parser).ParseFile(preCfg.Config)
+	err := flags.NewIniParser(parser).ParseFile(cfgPath)
 	if err != nil {
 		if _, ok := err.(*os.PathError); !ok {
 			fmt.Fprintln(os.Stderr, err)
diff --git a/dex/path.go b/dex/path.go
index 4021e59654..524cac5934 100644
--- a/dex/path.go
+++ b/dex/path.go
@@ -31,7 +31,6 @@ func CleanAndExpandPath(path string) string {
 			// they didn't have a LOCALAPPDATA.
 			dirName = os.Getenv("LOCALAPPDATA")
 		}
-
 		return filepath.Join(dirName, path)
 	}
 
@@ -40,17 +39,14 @@ func CleanAndExpandPath(path string) string {
 		// %VARIABLE%, but the variables can still be expanded via POSIX-style
 		// $VARIABLE.
 		path = os.ExpandEnv(path)
-		path, _ = filepath.Abs(path)
-		return path
-	}
-
-	if strings.HasPrefix(path, "~") {
-		dirName, _ = os.UserHomeDir()
+		return filepath.Clean(path)
 	}
 
-	if dirName == "" {
+	dirName, err := os.UserHomeDir()
+	if err != nil {
+		// Fallback to CWD if retrieving user home directory fails.
 		dirName = "."
 	}
 
-	return filepath.Join(dirName, path[2:])
+	return filepath.Join(dirName, path[1:])
 }