The financial impacts of divorce often last longer than the case itself. Planning ahead can help you avoid surprises and make better decisions during the process.
One Household Becomes Two
The same income now has to cover two homes, two sets of utilities and, often, two sets of children’s things. As a result, many people need a new budget. Start by listing your monthly expenses as they will look after the divorce.
Property and Debt
In Arkansas, marital property is divided equally unless the court finds that unfair and explains why (A.C.A. § 9-12-315). Debts are divided too. However, a divorce decree does not bind your lenders, so joint debts can still affect your credit.
Support
Child support follows the Arkansas guidelines, which look at both parents’ incomes. Alimony is different: there is no formula, and the court decides what is reasonable. Either way, support can change your monthly budget significantly.
Retirement Accounts
Retirement savings are often one of the largest marital assets. Dividing some plans requires a special court order. Also, withdrawing money early can trigger taxes and penalties.
Taxes and Insurance
- Your filing status will change.
- Health insurance for you and your children needs a plan.
- Update beneficiaries on life insurance and retirement accounts when the law allows.
Because the financial impacts of divorce can be complex, consider talking with a tax professional or financial planner as well. For the legal side, see my divorce page.
Talk With a Jonesboro Lawyer
You can call the office at 870.525.2191. Our phones are answered 24 hours a day, and Sara Beth or I will call you back. You can also request a consultation online. Consultations are free and usually last about 30 minutes, and I’ll explain how fees work for your kind of case before you decide anything.
This post is general information about Arkansas law, not legal advice for your situation.