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6 Financial Consequences of Divorce and How It Can Effect You

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Jan 25, 2021

6 Financial Consequences of Divorce and How It Can Effect You

Financial Consequences of Divorce, The Effects, and Problems

No one ever plans to get divorced. After all, the process of dissolving a marriage is typically harrowing.

And yet, millions of people file for divorce every year. This is an unfortunate reality of the world we live in.

One of the most significant factors people struggle with during this process is the economic effects of divorce on families. After all, many financial issues can blindside you. That’s why you need to be as prepared as possible and know your potential financial problems after divorce.

This article takes a look at some of the most significant financial consequences of divorce you should know about. Keep reading to get the inside scoop.

1.  Child Care

6 Financial Consequences of Divorce and How It Can Effect You

Let’s start by discussing the costs of child care. This is something anyone with children has to deal with anyway, but when you’re suddenly faced with this expense on your own, it can be traumatic.

This is true for both men and women. After all, following a divorce, there’s less of a chance that someone will be able to stay at home to care for your young children. Thus you will either be placed in a position of hiring help or dropping the little ones at daycare. Either way, it will hit you hard in the pocketbook.

2.  Credit Cards

Next, think about your credit cards. This can be a painful subject for divorcing couples, especially if the cards are in both people’s names.

Keep in mind that if you’ve become accustomed to using a credit that is issued in your spouses’ name, you will find yourself suddenly cut off from that financial resource.

On the other hand, if the card(s) is issued in your name, you’ll need to ensure that your spouse no longer has access to those funds.

3.  Child Support

Child support is another issue that can have a significant impact on your finances. Even if you have shared custody, be prepared for the court to make you responsible for paying monthly child support to your ex. The amount of support to be paid is determined based on several factors such as spouses’ incomes, percentage of parenting time, and more.

4.  Your Retirement Plan

6 Financial Consequences of Divorce and How It Can Effect You

The court will also likely award your spouse a percentage of your retirement funds from your employer. No matter how many additional years you plan to work before retirement, they will still likely be required to split the final amount.

5.  Tax Consequences

Failing to deal with taxes properly is one of the leading causes of financial problems after divorce. Once you’ve divided your assets, you’ll need to be prepared to cover the tax burden for your half.

6.  Attorney Fees

The question of many is, “who suffers most in a divorce?” By hiring the right attorney, generally, you will not be the one! However, there will be an expense when hiring a skilled attorney.

With all of the financial consequences of divorce, it is vital to choose the right one when it comes to finding an attorney. In the end, your attorney fees will be well worth the cost. From the start, a qualified attorney can request the court to require one spouse to cover the other’s legal expenses.

Now let’s discuss court costs. Unless you’re willing to consider mediation and settle the case out of court, you will be required to pay court costs. And while some divorcing couples can reach an amicable agreement without getting the court involved, a judge typically will finalize matters.

A Guide to the Most Common Financial Consequences of Divorce

Going through a divorce is never easy. Fortunately, understanding the financial consequences of divorce can help make the process easier and less stressful.

Please contact  The Family Law Firm of Dalena & Bosch to learn how to guide you through the divorce process. We understand the financial problems after divorce and its effects on families. Our team has the knowledge, experience, and passion for helping those in need during this difficult time.

Elizabeth Dalena helped me through a very difficult divorce and I felt working with her was like working with a friend you can trust! Beth, thank you for your professionalism and helping me through this difficult time.
Michael Mastrogiacomo - March 2020
If you’ve been searching for an honest and empathetic attorney...someone you can trust while you navigate the difficult and emotional world of family law, then do yourself a favor and contact Beth Dalena & Jessica Bosch. You’ll be so glad you did.
Par 5 Consulting - March 2020
When you are in the painful and often frightening process of divorce, the women of this law firm bring you confidence and security with their knowledge and professionalism. They exhibit that rare combination of the willingness to hold your hand like a compassionate friend and defend you like a piranha in the courtroom when necessary. They exhibit dedication, and the grace and wisdom of their long term experience. They look…
Cindy Morhouse - February 2020
These ladies have helped me several times in my experience with them. Jessica was my divorce attorney and I can say without hesitation, she was professionally and personally a gift to me. She handled my case (adversarial at best) with grace and knowledge. A fighter when necessary. She handled me in my personal state as a friend. Compassionate and kind. Beth assisted me with rewriting my deed after my divorce…
Scarlett O - January 2020
I chose Jessica A. Bosch to represent me because she was compassionate and knowledgeable. My divorce was a long and difficult journey. During this time, I lost sight of what was really important. Jessica kept me grounded and focused on what would be best for me after the divorce. I am grateful for her help in protecting two very important financial things that I might have given up. I didn't…
Cynthia R - December 2019