Last month, we discussed the consequences that divorce can have on your finances. However, we feel we could only scratch the surface with one blog because one of the biggest challenges that many people face when going through a divorce is dealing with the impact on their finances.
Let’s explore a few more ways that the separation can impact your financial future:
Property Division
This is one of the biggest concerns for many people going through a divorce. How much of the property is divided up, and what those divisions end up being, will depend in large part on the laws in your state. This would also be affected whether or not you and your spouse signed a prenuptial agreement. It’s important to remember that the division of property will include physical items, such as your home and cars, as well as financial assets, such as bank and retirement accounts.
Alimony and Child Support
This can be a major issue for couples when they divorce. Child support and alimony payments may be quite large, and are typically stipulated by the court. If you’re on the paying end, you will need to factor these into your budget because these payments are mandatory. If you’re on the receiving end, you’ll need to carefully consider how to use the money, and what to do with anything that’s left over after basic expenses are met. You’ll also want to find out about any tax issues that may apply to your situation.
Credit Ratings
We also mentioned last month how a divorce can negatively impact your debt levels; however, it can affect your credit rating as well. If you and your ex are, for some reason, both associated with an account after the separation and your ex is not prompt with his or her payments, both yours and your former spouse’s credit score will suffer. It’s just one more reason to work with a qualified divorce attorney to have those kinds of things settled during the divorce.
A divorce can affect your finances in many ways, but you don’t have to go through this process alone. The attorneys at Doyle, Schafer, McMahon can provide the legal advice that you need, and expertly handle your legal matters. Contact us through our website or give us a call at (949) 727-7077.