Marriage has its charms — companionship, family life, children, typically a higher standard of living, and more. Most do not think of what might happen if the marriage were to result in divorce. When irreconcilable differences arise, divorce may be the only option for the emotional well-being of the parties and their children. However, one’s financial well-being during and after a divorce, particularly in today’s hard economic times, is a whole different issue for divorcing parties to handle.
Residents of Michigan in the process of seeking a divorce, or who know someone who is getting a divorce or have been recently divorced may be all too familiar with the statistic that fifty percent of all marriages in the U.S. end in divorce. During a divorce or after the divorce is finalized, the parties may be financially strained for several reasons, including the fact that they may not share the benefit of two incomes. As a result, lifestyle changes become a necessity and sacrifices to a new financial reality must be made.
A mother of two and a recent divorcee notes that during marriage, the family had two incomes and they were financially comfortable. But after she ended her five-year marriage, keeping up with the expense of her two young children’s private schooling was burdensome. She made numerous cutbacks such as moving into a smaller home, budgeting her lifestyle and the like. Sometimes the emotional strain of divorcing may cloud the judgment of those involved and they may not consider the economics of their marriage. Nevertheless, it is important to make and keep a financial inventory of bills, expenses and other vital financial information such as bank account numbers. Furthermore, both parents should look into the tax implications of the divorce, particularly when there is more than one child from the marriage.
Divorce is never easy and during today’s hard economic times, financial worry stemming from seeking a divorce may take an emotional toll on the parties. Nevertheless, it is encouraging for Michigan residents to know that it is possible for a divorced spouse to establish and remain within a budget in order to be financially healthy during a divorce, while still looking toward the desired outcome in the divorce.
Source: KTRK-TV Houston Texas, “Minimize financial fallout from divorce,” Gina Gaston, Oct. 18, 2012
