Pick ten articles on the financial ramifications of divorce, and 9 of them will probably predict a future of money troubles, penny pinching and budget cutbacks. Why?
Because divorce is financially hard on many people. You go from two incomes to one. You suddenly have less earning power, and twice as many things that need to be done. It’s hard. But that isn’t the only reality worth considering.
Believe it or not, divorce can have a financial upside!
Say what? A financial upside to divorce? Not likely. No really – it’s true! There are financial benefits to getting divorced that many people don’t even consider when they end their marriage. Financial benefits that, for some people, can make the difference! So what are they? Here you go. And you’re welcome.
A chance to rethink your financial priorities
If you always wanted to save for that amazing Tuscan vacation, or stash a little cash towards the car of your dreams, now’s your chance. Many people have to give up on their pipe dreams when they get married because their spouses don’t agree with the way they save, or the things they’re saving for. A divorce allows you to decide what you want for your financial future, without having to accommodate someone else’s views, and then pursue it!
More control over your money
Being single means you get to decide how your money is spent. If you want to save money by buying groceries and cooking instead of ordering in and eating out on a regular basis, now you can. If you want to use tax returns to pay off debt instead of buying a bigger tv, the choice is now yours to make. Divorce means that you now longer have to fight about how money is spent. Hurray!
The opportunity to budget the way you think is best
Budgeting is hard. Making a plan to scrimp and save, and then sticking to it, is very difficult. But it’s even harder when your efforts are undermined by a spouse who doesn’t agree with your efforts. Or care about them. Being married to someone who regularly gambles away your savings, or compulsively shops with the bill money can be extremely frustrating! Divorce offers you a chance to make a budget that you like, and a chance to stick to it without interference from anyone else!
More financial aid for your kids college fund
In many cases, the Free Application for Federal Student Aid only requires financial information from the custodial parent instead of both parents. (You do have to include child and spousal support though!) This means that your child may be eligible for more federal support when it’s time for them to go to college.
Better returns on your investments
As with budget issues and savings decisions, financial investments will be solely your concern after the divorce. Where before you had to take your spouse’s opinion into account, now you are free to make the investments you believe are best for your future. Just don’t forget to discuss your strategy with a financial advisor.
Social security benefits for later in life
If you were married for longer than 10 years, you’re eligible to apply for social security spousal benefits when you retire. You will receive either 50% of your spouse’s social security benefits, or 100% of your own, depending on which one is the higher number.
What does your financial future look like?
If you or a loved one considering divorce, and would like a chance to restart your financial situation in life, call The Kronzek Firm at 866 766 5245. Although not everyone finds their financial situation gets better after a divorce, the truth is that some people do! So if your finances are headed nowhere, because your spouse has a spending problem, and you’d like a chance to reconfigure your financial future, come in and talk to us. We’re here to help.