Filing for a divorce is never easy, and sometimes it is the time period right after your divorce that can be the most challenging. Getting used to a completely new way of life, adjusting to less of an income a different living arrangement, you name it; everything changes. One of the hardest changes for a divorced person is the financial strains that arise after a divorce, because not everyone gets to win a couple million when they split from their spouse. In the event of a divorce, couples have to separate their assets and when that happens many times spouses can lose their financial security in case of an emergency. Having that vacation home was always nice, for example, because you knew that you owned it and if you were ever in a financial rut you could sell it as a backup. When your ex wins that in the divorce, you can lose the security.
Another very difficult part of a divorce is the new budgeting that will be required. Even if you separated and still have a decent job, the new way of life may be difficult to get used to and cause a little extra strain on your wallet. Even the simple things such as learning to pay all the bills on your own, can be taxing for a person who was used to not only more money, but a spouse who controlled the finances. After a divorce, you will have to get used to only one income, and that can be a challenge for some people who realize that their standard of living must change a bit. Some spouses don’t want to deal with the fact that having a large home is the best idea after a divorce, others want to keep up their shopping habits when they know they don’t have the money anymore. Whatever the case may be for you, it is important to prepare yourself for the financial differences that will arise post-divorce.
Child support and alimony may also cause a strain on your post-divorce income for those who are required by law to make payments. In the event that a parent gets full custody of the children, it is then the responsibility of the other spouse to financially support the full time parent in order for them to properly care and raise the children. Many times this can be straining when the court requires a high sum on a monthly basis. Alimony payments may also add a lot of pressure to a spouse’s income. For example, if a couple was married and one spouse stayed home with the children and the other worked full time, when they are divorce it is very likely that the court will grant the at-home spouse the right to receive alimony. This is because it was the couple’s decision for the spouse to remain at home, and therefore at the point of a divorce they will be required to start all over again, and may need financial help on the way.
As with most people in this country, we rely heavily on credit and if you divorce and your spouse had poor credit, that my still affect you too because some of their debt was in your name. Overall, a divorce can cause a lot of financial tension on a person’s life, though with the proper planning and budgeting it is entirely possible to come out successful from this season of life. If you are considering a divorce, contact Claery & Green today to discuss your situation, we have years of experience working with a variety of divorce situations and we want to help you!