Divorce is never an easy process. Whether it’s mutually agreed upon, or one side decides to end the marriage, divorce often brings a whole new set of challenges as those involved move forward with their new reality. Along with the inherent emotional challenges that come with divorce, monetary hardships may also occur.
Below, we’ve listed the most common financial strains people experience following a divorce:
Undoubtedly, among the first financial components that are noticeably impacted by divorce is your retirement fund. As you split your assets down the middle, your former spouse is entitled, by law, to half of what you have stored away. The reality of the matter is that after a divorce, it can take a considerable amount of time to build your retirement account back up to previous levels.
It’s quite common for both parties to be on one spouse’s health insurance plan. As a result, there’s no surprise that the loss of health insurance is a common financial strain immediately following a divorce. Once all of the paperwork has been settled and the divorce is final, it will be time for one member to apply for their own plan. If you’ve been relying on your partner’s health insurance benefits up until now, you’ll have a new monthly bill in its place that you will be responsible for paying moving forward.
Another common post-divorce financial headache is the monthly mortgage payment. This is why many former spouses decide to sell the home they own together and split the revenue instead of one person moving out while the other keeps the property. Keeping the former family home may put an increased burden on the new sole owner as they will now need to be responsible for paying the bills without the assistance of their former partner.
If you and your former spouse previously owned a business together, plan for additional financial complications associated with your divorce. Family businesses can be tough, as they often encapsulate years of time and effort from both parties. It can also be difficult to compensate for the emotional value of your business in addition to the monetary valuation. At the end of the day, it’s a similar situation to your home – If it isn’t sold and divided up, one person will likely be out of a job while the other continues to run the business on their own.
This is easily one of the most common financial burdens following a divorce. Raising children is expensive. From school to medical bills and everything in between, it can take a lot out of a person to do it on their own. Regardless of your custody and child support situation, childcare will affect both former spouses monetarily in some way.
Andersen, Tate & Carr, P.C. wants to help you and your family navigate the legal system to find the best resolution, and alleviate as much of the stress and emotional hardship we can. Family law attorney Trinity Hundredmark has more than a decade of experience representing clients divorcing in Georgia. For more information, contact our law office at 1-770-822-0900.