One of the reasons some people might hesitate to get divorced is that they worry about their finances. They might be concerned about how their marital assets will be split or whether they will have to pay child support. They might even worry about being able to support themselves and their families. It can’t be denied that divorce does have a financial impact, but it’s also not particularly healthy to remain in a marriage just for financial reasons. However, it is important to consider how divorce might affect you and your finances when you are thinking about divorce or going through the process.
Income
Some people might find that their income is affected by divorce. How much this is true can depend on a few things, such as whether you have children and whether you combine your finances with your spouse’s or keep them separate. You might be asking questions such as: how much alimony will I get? Will I receive child support? Or will I have to pay these things to my ex-spouse? How much each of you earns will have an effect on the answers, as will who has primary care of any children. Getting divorced could also mean you need to find a different job.
Assets
Another thing that may change when you get divorced is your assets. Dividing marital assets can be a complicated process, although the initial assumption is often that they will be split 50/50. There might be some assets that don’t count as marital property, such as property you owned before the marriage or inheritances. However, there are also many things that might be split between you, such as your home, car, savings, and even investments and pensions. Not every asset has to be split between you. For example, one of you might keep your home while the other gets the equivalent value in cash.
Costs of Living
Your living costs can be affected by a divorce. With only one income, you can’t split all of your costs between two people. You will need to cover everything yourself, which might include the cost of renting a new home or cooking for one. Even costs such as your commute to work might change due to relocation. When you get divorced, it’s a good idea to work out a budget based on your new income and new expenses so you can manage your money better.
Cost of Divorce
It’s also important to consider the cost of the divorce itself. How much the process costs you will often depend on how amicable it is. If you and your spouse are willing to work together or use mediation, it’s likely it’s going to cost a lot less compared to if you have to go to court. Of course, sometimes it can be hard to avoid that, so it’s smart to be prepared for the cost of a divorce lawyer.
Divorce might affect your finances in numerous ways. Don’t avoid divorce because of the financial impact, but be aware of how it might change things.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)
