Divorce often requires a significant period of adjustment. Even if it is quite some time in the making, finalizing a divorce has its own effects. Among the many impacts of divorce to consider and adjust to, the financial impacts are likely to be among the most significant. The financial effects of divorce can have more far-reaching consequences than many will consider at first. It is critical, however, to plan as best you can for these impacts as it will help you on your way to solid financial ground after divorce.
The Financial Impacts of Divorce
Divorce is expensive. There are the court costs. There are the attorney’s fees. It is unavoidable that divorce will come with some kind of bill. The most significant financial costs of divorce, however, can come from other things. For instance, two people running separate households is almost always more expensive than two people living together, carrying the costs of living together. When you divorce, it is likely that you will be covering more costs than you ever were when you were married. This is a big adjustment to make.
As the divorce is finalized, you may find that you are legally obligated pursuant to a court order to pay child support and/or spousal support. While child support and spousal support will have end dates, you could be making these payments far into the future. You will need to establish a budget that accounts for these monthly payments to help ensure that you have the funds available to fulfill your legal responsibility. Should you have a financial change in circumstances, you will need to petition the court for a modification. Until you are granted a modification, it will not matter if your financial circumstances prevent you from making the court order payments, the order is still enforceable and you may incur significant penalties for failure to comply.
On the other side of things, you may be the recipient of spousal support and/or child support payments. If this is the case, you too should have a budget that accounts for these payments. Factor these payments into your monthly living expenses. Additionally, you should be mindful of the fact that these payments will not last forever. When payments stop, will you have enough income to keep covering your costs? If not, you either need to make more money, reduce your living expenses, or do both. If you need to make more money, will you need further job training or education? If this is the case, plan for how you are going to cover the costs associated with this before you begin earning more money.
Family Law Attorney
At the Law Offices of Bryce Cook, we are committed to supporting our clients throughout the divorce process and setting them up for a successful post-divorce life. For more information regarding how to plan for the financial impacts of divorce, we are here to provide you with answers. Contact the Law Offices of Bryce Cook today.