Separating from your spouse can cause a range of issues, including financial ones. Money may feel like the least of your problems when you’re getting divorced but it’s important not to ignore it. Your finances can be affected significantly, from a lower-income to higher costs, and more. When you’re starting the process of getting divorced, it’s important to understand what could happen, what the law says, and how you can make sure you stay on your feet. There are several key financial issues you should consider during the divorce process. Here are some of the things you should be thinking about.
Debt can sometimes be a complicated issue to deal with in divorce, depending on where you live. It might be that any debt that you bought into the marriage remains yours alone. Debt that either of you took on during the marriage, even in only one name, could be split between you when dividing debt after separation. One thing to remember is that although there is often an assumption of how debt will be divided, you can usually still agree to something different. So if you want to split any marital debt in a way other than straight down the middle, it could be an option.
Alimony and Child Support
When there is an income disparity or you have children, two things that you might have to deal with are alimony and divorce. Alimony might be paid by the higher earner to the lower earner so that they can continue to live comfortably, especially if they might need time to look for work. Child support is often more related to who has primary care of the children but there might be issues to deal with if there is a big income disparity too. These things can be worked out between you without going to court if you want to.
Getting divorced can mean that your household income changes and your expenses change. You’re now a single-income household, plus you could be paying more for various things, from rent to child support. Budgeting to match your new household income and expenses is essential, allowing you to gain control of your financial situation as soon as possible. It might show you that it’s necessary to increase your income or make other financial changes so that you are able to manage your money more appropriately.
The Cost of Divorce
Don’t forget to consider the cost of divorce when separating from your spouse. It can get expensive, especially if it’s not a very amicable split. If you want to keep your costs down, aiming to work together with your spouse to agree to the terms of the divorce between you can help. This could be done with a lawyer or lawyers, or you might have a mediator who can help you to work out how you want to handle everything from finances to child custody.
Consider these top financial issues in your divorce if you want to ensure you can protect yourself as much as possible.
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