Whether it was amicable or bitter, divorce is always going to bring about change. One thing that’s always going to change is your finances. If you’re not careful, your financial picture could take a turn for the worst. Here’s how your finances can change after a divorce.
Divorce, albeit on good or bad terms, changes your life. Unfortunately, many divorces end up in court with less than favorable outcomes for one or both parties. In some cases, your husband or wife is awarded the house, which means you now need to find somewhere to live. Or, the judge might decide that you need to split all martial property down the middle. According to lawyer James A. Jackson, in many states, assets acquired during marriage, such as a home, are subject to equal division during divorce proceedings. But establishing fault needs to be done before anything can happen. This is just one of the reasons why many couples these days sign prenuptial agreements. Basically, couples use prenuptial agreements to control who gets what should they get divorced or, unfortunately, pass on.
According to Clearpoint, one thing that divorce can really have an impact on is any debt you have. Specifically, the debt you have accumulated with your ex-spouse. If you settle your divorce in court, the judge will split the debt between both of you.Despite being divorced, you both must pay off this debt. However, the payments you make are separate, so you can’t depend on the other if you are short of money. However, there are times where a spouse can drag the other down in debt. Before any damage can be done, be sure to close any joint credit cards and bank accounts you have. Then, request a copy of your credit report. This can be used to see what your spouse has been up to and whether you need to file suit.
Child Support and Alimony
Lastly, if there are any children involved, child support and alimony payments need to be taken into account. Again, if your divorce was settled in court, the person who doesn’t have custody of the children will be obligated to pay child support. As for the alimony, it depends on whether or not the judge awards it. However, keep in mind that alimony payments may only last until a divorce is finalized.
No one gets married with the notion they will divorce. Sadly, even with the most loving marriages, sometimes things just don’t work out. However, that doesn’t mean things need to end poorly. With the right attorney behind you, you’ll be able to keep your finances stable while enjoying the single life once again.
To avoid some problems, it’s often best to make certain financial decisions before you get married. Read more tips on that here: Financial Decisions You Need to Make Before Tying the Knot