Impact Of Divorce On Your Finances
Divorce brings in a lot of changes in your life
. Some can be relaxing and some are quite stressful. It surely leaves with an emotional bankrupt stage where from you take some time to recover. It leaves you with a disturbed monetary status too.
The entire process of divorce leaves you with a big hole in your pocket, upsets your bank balance and creates a ripple of negativity in all the monetary matters of your life.
Some of the impacts are mentioned below
Alimony
If your spouse has been financially dependent upon you then, he or she will surely claim for alimony. This amount will force you to give a huge amount of earning either in one go or monthly so that she can support herself and her children. After all, children belong to you too. Hence the responsibility sharing comes in your lap too which is quite logically thought it may be a pinching task for you to transfer a chunk of your money to your ex-spouses account.
Credit Card
You may have been holding a joint credit card, now any and every payment has to be cleared at the time of divorce. If your spouse is an earning member then she might have to share a part of the credit bills else, the entire clearance would become your sole responsibility.
Assets
Any asset in the form of car, music system, T.V. or anything which both of you had bought together will surely be given and shared by your spouse too. Hence, to start afresh you will have to buy a few of the things which are expenditure after divorce.
Mortgages
If both of you had invested in a property together then both the partners have to continue paying the mortgage even after divorce. However, if one of you continues to stay in the house then selling off to this person is a great idea, otherwise it can be sold off to a third party is that you get rid of the burden of paying a
joint mortgage.
Child support
Even after youre separate from your children your responsibility towards them cannot be diminished. Hence, if the children are looked after your spouse, you have to pay a certain amount to support the children.
Insurances
While in the relationship both of you must have bought life insurances or any other insurances for which you might be paying the premiums together. Here, you have to see if the insurance has the option of withdrawing at any point of time then you can do that and come out of it rather than being caught in confusion. Else, you have to continue paying the premiums till the maturity period comes.
Investments
Both of you must have made investments in stocks, bonds, securities etc., so either you decide to keep the money as it is and enjoy at a certain age or you can sell off seeing the market trend and distribute the cash amongst both of you.
Before filing for a divorce you must do your set of homework about your asset in cash and kind so that the court can be informed and there is adequate clarity and transparency on the matter.
by: Richard Hicks
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