Divorce can be the best option for a person or a family. While it can be the best course of action, it is certainly not without its challenges. For instance, there can be significant financial impacts to navigate after divorce. The sooner you are aware of these potential impacts, the sooner you can start working to weather the rough financial winds that may soon be blowing your way.
Financial Impacts of Divorce
The costs associated with divorce run at several levels. First, there can be substantial costs of obtaining a divorce. These costs will, of course, vary based on things such as the complexity of your case as well as whether the divorce is contentious or amicable. On top of fees and costs incurred to get divorced, there is also the fact that two people paying for living expenses under one roof is often much less expensive than two people paying for living expenses under two roofs. Divorce will upend any type of budget you have established and you will need to start seriously reevaluating your financial situation.
On top of the costs of getting a divorce and the fact that it will likely be more expensive to live away from your former spouse, there is also the division of marital assets and debts that can impact you financially. The way that you and your spouse agree, or the court decides to, divide marital assets and debts can set the tone for your initial financial footing after a divorce has been granted. You may find yourself taking on debt payments that your spouse mainly handled while married.
There is also the financial impact associated with child support and spousal support (sometimes referred to as “alimony”). If you have been ordered to pay child support as part of the divorce decree, you have a legal obligation to pay it. The same is true of spousal support. While support payments will not last forever and may be adjusted and reviewed periodically, you should budget accordingly for the foreseeable future.
On the other side of things, if you are to be the recipient of child support and/or spousal support payments, you should budget for the receipt of these payments. Be mindful, however, that these payments will likely have specific end dates and you should plan accordingly for when these payments will come to an end. Evaluate whether you have the income to meet your cost of living expenses without these support payments. If not, you will need to develop a plan to increase your income and/or decrease your cost of living expenses. You may even want to go back to school or enter into other training programs to increase your earning capacity. If this is part of the plan, you will also need to plan to cover the expenses associated with seeking this type of training and education.
Florida Family Law Attorneys
At Orlando Family Team, we are here to provide trusted legal counsel to you before the divorce, during divorce, and after divorce. Please feel free to reach out to us with any of your questions or concerns. Contact us today.