There is always the flip side of the coin. While marriage is still a very large and important part of society, divorce remains consistent as well. Although it can be a very difficult and emotional life event, divorcing spouses should understand that they are not alone.
There are resources available to aid them through the process and any issues that may arise.
Finances are often the cause of many arguments during marriage. Similarly, finances create problems during the dissolution process. It is imperative that divorcing couples understand how finances impact divorce and how best to address these matters.
The cost of divorce
The most obvious financial implication divorce has is the actual cost. Typically, a divorce involving several disputes that takes much time to resolve will cost much more than a divorce that has very little to no issues to sort through. In other words, the longer it takes to get through the divorce process, the more expensive it will be.
Divorce can also cost you your retirement. For those that have their retirement accounts solely in their name are likely not saved from having these accounts split. Often retirement accounts are split in half. It is important to consider how this will impact you, as this could alter when you retire and how much you put in your retirement accounts.
The division of property could have financial implications.
For starters, keeping the family home might feel like a win; however, it could bring about unexpected issues. Not only will you need to change the mortgage to have only your name, but refinancing will be necessary.
Lastly, you will need to qualify for the home loan on your own, which may be difficult due to the financial issues the divorce process has or may cause.
It is important to note that there are tax consequences when certain assets are retained. While maintaining the family home can have large tax consequences, other assets could as well. If assets are sold or retained, it could carry with it financial and tax implications, making it important to consider these when moving through these transactions.
The divorce process can be very complex with many working parts. It is also an emotional process, making it challenging to navigate on your own. It is important to obtain guidance when it comes to your legal rights and options, helping you obtain a favorable resolution.