If it looks like you may be headed for a divorce, you will have many considerations to think about and decisions to make. One of the most important things is how you will handle your finances. A divorce changes everyone’s monetary status in different ways. Here are some ways that a divorce could impact your financial status.
Most divorced couples no longer live together. The courts may award a shared marital home to one of the spouses, one spouse might buy out the other spouse’s share of the home for full ownership, or you both might sell the house and divide the profit evenly.
You’ll usually use one of these approaches for shared assets when you cannot agree on other ways to divide and disperse profit. Individual possessions like clothes or technology usually don’t cause too many problems to split. The division of assets may mean you may have to replace belongings and furniture that your spouse got.
Income and Expenses
Couples that combined income and expenses during the marriage will after the divorce keep their own income. Likely, they will also split the remaining bills and debts. For example, credit cards in one person’s name may become that individual’s sole responsibility unless both spouses shared the account. Living on one income will require a new budget with the help of financial planning.
If one spouse does not have a job at the time of the divorce or separation or if they will not be able to get a job in the near future, the other spouse may be required to financially support them. This is called alimony or spousal support. Usually, it is only a temporary requirement. Likely, it will only be awarded for as long as it takes the spouse with a low or nonexistent income to brush up their marketable skills, complete an educational degree, or get a job that can support them.
If you have children, your lawyers will have to negotiate child custody, visitation, and financial support. These are often major points of contention when a marriage breaks down, and there may be costs associated with the ex-spouses’ share of responsibility for child care, education, and maintenance. Child support will help cover these costs and the loss of your ex’s income.
Although personal belongings are not always an issue, they can cause conflict if, for example, one person claims to have paid for a bicycle used by the other person. Lawn equipment, furniture, and jewelry purchased by one person for the other sometimes can still end up causing disagreements, even if you consider them personal belongings.
Get Legal Advice
These and other financial questions and decisions may benefit from the advice of a divorce lawyer. They can explain each spouses’ legal rights and limitations with regard to the division of assets and financial responsibilities. Contact a lawyer who has experience with family law and the effect of divorce on a person’s finances in particular. You may be able to save time and reduce conflict by working with an objective third party to amicably resolve differences of opinion.
Going through a divorce is never easy, and separating finances makes it harder. Get the professional help you need to reduce tension and simplify the financial situation.