What Divorce Means for Your Finances

Thursday, March 10, 2016, 6:00 AM | Leave Comment

You always knew a divorce would be messy, but you perhaps did not understand fully how it would impact your financial situation.

Divorce, aside from being emotionally draining, will often prove to be an expensive endeavor as well.

Often the full extent of the financial toll is not realized until a judge has ruled and the aftermath has been calculated down to the last penny.

The following issues represent a few ways divorce can either help or hinder your financial situation.

What Divorce Means for Your Finances

  • You are the Winner

    When people think of divorce, they often imagine they will lose big. Sometimes the opposite is true.

    With the right legal strategy, the judge might simply side with you and hand you assets and control over money you did not expect to retain.

    The other spouse might even be obligated to pay your legal fees to boot. Some might see this as a huge financial win.

  • You Got the Kids

    A lot of times, one or both spouses will end up gaining some degree of custody of the children from their marriage once the divorce is finalized.

    Because children require food, clothing, and other necessities of life, you can expect that retaining custody will come at a price to your financial situation.

    Depending on how much child support the other parent is required to pay to the custodial parent, this can weigh light or heavy on a parent’s finances for many years to come.

  • Getting an Attorney

    When it comes to getting a divorce, getting an attorney is a smart move to better ensure your financial outcome.

    A competent attorney such as divorce lawyer Jill Coil in Salt Lake City will walk you through all the pitfalls of divorce and help you to avoid as much financial loss as possible.

    This becomes even more necessary if a divorce involves a significant amount of marital and business assets to be divided up among the two parties involved in the divorce.

  • The IRS

    If it can be taxed, you can bet the IRS will find a way to make your divorce all that much more financially unpleasant.

    According to Divorcenet.com, one of the major mistakes people make during a divorce is failure to anticipate the taxable IRS impact on their divorce.

    To avoid such complications and limit financial liabilities in this area, it is best for both parties to work with a competent divorce financial planner or tax accountant.

There is no getting around the fact that a divorce is costly in so many ways.

With the right kind of preparation and forethought, a divorce need not be more financially burdensome than necessary for both parties involved.

Cooperation is perhaps the best way for both parties to get what they want out of a divorce with the least amount of financial ruin possible.

Author BIO

Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.

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