Dealing with the financial changes of divorce

On Behalf of | Nov 7, 2018 | Divorce

People in Virginia who are thinking about divorce often remain for years in unhappy marriages because they are worried about the financial consequences of ending the relationship. It is true that the financial aspects of divorce can have lasting effects that remain long after the emotional and practical attachments have been addressed. However, by keeping some tips in mind, people can help to protect their assets and emerge from divorce with their path to financial success intact.

In the immediate period after a divorce, some people may be tempted to make major purchases. People often need to find a new place to live, and they may find themselves looking for a new vehicle as well as a new style to match their single lives. However, the temptation may not be worth it when people are adjusting to life in a single-income household. Major purchases like a car or a house are best postponed until some period after the divorce when former spouses have gained a greater understanding of their new budgets.

There are also other long-term factors to consider when making financial decisions after a divorce. Some people may struggle to make ends meet and pay monthly bills yet retain investment accounts. They might consider cashing some of those in to cover ongoing expenses. However, people should keep tax consequences in mind; they can be significant for people selling off investments. In addition, this could postpone their financial goals for the future. Looking for ways to save and make frugal choices could be a better option.

When people decide to divorce, they might have many questions about the financial effects of their decision. A family law attorney may provide guidance and representation to help their client achieve a just settlement on major issues, including spousal support and property division.



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