When people talk of divorce, they often speak of the emotional toll that it takes. They mention how hard it was on them and their family, and how stressed or sad they were during this time. And while the emotional toll is certainly a large part of any divorce, sometimes we forget about the financial impact that it can have. If you are going through a divorce, there are a few ways that it can impact your financial situation. By knowing about these ahead of time, you can better prepare.
For starters, there are going to be legal fees involved with your divorce. How much you need to pay will depend on the specifics of your divorce, but there will most likely be at least some legal fees that you need to pay. For example, if you hire a lawyer, you will need to pay them along with fees if you go to court.
If you decide to not retain a lawyer and represent yourself instead, there are companies that are affordable for most families going through court proceedings. Places like National Family Solutions provide attorneys and legal document assistants to help you with all of the paperwork involved with a divorce. This way, you have the expertise of legal professionals with all the court documents, and since family law is mostly a written argument, that’s very important. You can relieve a lot of the financial burden of a divorce if you do some of the leg work yourself but still have assistance from legal experts for the paperwork and other crucial steps in the process. After all, divorces can be an extremely emotionally painful time and it can’t hurt to not have to worry about the high cost of attorney fees as well.
Lastly, if you and your spouse use a mediator to split the assets, you will need to pay them as well. Going through a divorce can put a strain on your finances, thanks in no small part to all of the legal fees that can come with it.
If you and your spouse currently share assets, these are going to most likely be split amongst the two of you. Except in some cases, everything you own together will be split between the two of you, meaning that you will have less than you did before. Think about all of the assets that you and your spouse share – homes, cars, stocks, bonds, etc – and think about what your financial situation will be like if you lose a portion of them. You may both decide to sell your property and cut its shares. However, you may also settle with removing the name of either one of you as the property owner and do that by creating a quitclaim deed.
A divorce can also impact your business’s finances. If you and your spouse currently own or run a business together, this will have some complications. You will need to decide if you can continue working together, and if not, how you are going to handle the business going forward.
Lastly, once you get a divorce, there will likely be some new bills in your life that you need to pay. For example, before your divorce you may have had two incomes that you could use to pay for things like rent, food, and utilities. Now, you are likely to have only one income, and you will have to pay for these things on your own. You will have to find a way to live your life on your new income level, and make some adjustments in order to get by.
Be Prepared Ahead Of Time
If your divorce is going to cause a large financial shift for you, it is best to know about it as soon as possible. By learning what impact this divorce may have on your money, you can take steps to adjust over time, rather than all at once. Going through a divorce is never easy, and more than likely you are just focused on getting by emotionally. However you should try to find some time to plan out your financial future, so that you can have one less thing to worry about.