Anyone thinking of filing for divorce might be aware of the financial implications. It is pretty easy for younger ones who get divorced to bounce back on track financially; even at that, divorce takes its toll on finances. For instance, one obvious implication of getting a divorce is no more splitting of bills and mortgages. Besides, when you finally divide up your investments, you will be left with less savings.
Divorce takes its toll on couples financially if it happens after retirement. "Gray divorce” usually leave retirees with a little amount of income to fend for themselves when the worst is over.
Yes, divorce can lead to serious financial difficulties which could be short or long term. There could however be financial benefits of divorce to some people. Here is how divorce can help people with financial issues:
Divorce comes with the freedom of leaving you to manage your expenses. Married couples often have joint accounts and liaise before they spend. Besides, they also have to consult together before making a budget. Divorce gives you the freedom to make your budget and decide how you want to spend.
Many times, if you withdraw too early from your retirement account, the penalty is usually substantial. With divorce, however, you can take an early withdrawal from your retirement account without any penalty. If your divorce involves a qualified domestic relations order, you have the chance to make an early withdrawal from your retirement account. This usually comes without the attached fees. You will, however, be taxed on the amount you withdraw.
Men, compared to women are prone to taking risks and a more aggressive approach to investments. Women, on the other hand, take less risk and are not that aggressive with investments. Hence, women that are just divorced in the long run will make their financial decisions individually. This will limit the chances of making risky investment decisions, and this could translate to huge returns.
Presence of kids from divorce couples who will soon be going to college could benefit. Kids going to college could be eligible for better and more meaningful financial aid packages. Basically, all information on finances is usually gotten from the custodial parent. The spouse maintenance and child support gotten by the parents need to be added to the student’s financial aid application. This could make the child qualify for additional funds.
Too many people out there that needs assistance filing for divorce in Altamonte Springs. Get in touch with Frank Family law practice. We have a dedicated family law practice in Altamonte Springs to help with your divorce case. Get in touch with us today and a divorce attorney will speak to you about your best options for your divorce.