Divorce is a struggle emotionally and physically, but it can also take a financial toll. Everybody has different needs and wants when they approach the concept of divorce, and it can be difficult to determine how you should react when you decide to get a divorce. When you consider the financial aspects, there are several things you need to realize on a financial level.
1. You need a lawyer.
This may not sound like financial advice, but it is. You need to have somebody who has your best interest in mind. You will be able to consult with your lawyer about financial issues to ensure that you do not do anything that will shoot you in the foot later on.
2. Divorce can cost a varied amount of money.
There is no "official" cost of divorce. It can cost the amount to file papers and hire an attorney, but it could also include the cost of a house, child support, or alimony. You cannot approach a divorce with the idea that you are going to walk away spending any specific amount of money.
3. Alimony is tax deductible.
Many people do not realize that the alimony they pay is tax deductible. Make sure to talk with your lawyer or accountant to make sure that you are only paying the taxes you are legally required to pay.
4. Don't be too proud to accept alimony if it is owed to you.
Let's say that you are a stay-at-home parent who has quit work to be with the kids. After the divorce, you will be financially worse off than before. This is what alimony is meant to provide assistance with. This is not money that is undeserved.
5. Equal division makes things easiest.
If you can find a way to divide property and finances easily, your divorce will move more quickly. It will also be an easier battle in court. For this reason, many people consider collaborative divorce.
6. Don't make impulsive decisions.
Many professionals will advise you not to make big decisions within the year after a major life change, including divorce. It is tempting to buy a new car or a house, but it is better to spend some time mulling over choices first.
Divorce is not easy on anybody, but you can come up with financial reasons to make it go as smoothly as possible. These tips will help you make better financial decisions during this difficult time.Share