The Financial Impacts of Getting Divorced

Different times in your life will have different impacts on your finances. One big life event that can have an impact on you financially is getting divorced. When you get divorced, these are the financial impacts you can expect.

Settling on Alimony Payments

The first financial implication to consider when getting divorced is alimony. Alimony is financial support that your ex-partner is legally required to give you after your divorce. If you didn’t work while you were married, or can’t support yourself on your income, you can file for alimony to receive this financial help. 

Whether you’re on the giving or receiving end of alimony payments, it’s an uncomfortable process. However, it is a necessary step in completing your divorce. Requesting alimony is a step in the divorce process, and allows either individual to receive the financial help they need after the separation is final.

Splitting Property

Another financial impact that you experience when getting divorced is splitting your property. Because you likely lived together while you were married, you now have to decide what will happen to your property. Most of the time a divorce means you will need to sell your home. However, other agreements can be reached. 

If you have children with your ex-partner, one of you may decide to stay in the home so that your children don’t have to switch schools or neighborhoods. If that is the case, you’ll need to transfer the deed over to the individual, and the other person will need to find a new place to live. 

Recovering From Double Income

Even if both you and your ex-partner worked while you were married, there is a recovery process that you go through after divorce. You’re used to two incomes and have to get used to living off of only one again. While alimony can help, you will likely ultimately need to increase your income to compensate for the missing salary. Many divorcees will find new, higher-paying jobs to help them continue to live the lifestyle they’re used to after divorce. Trying to figure out your finances after a divorce can be difficult, and it takes a while to fully recover.

Getting divorced means going through countless lifestyle changes. Your finances are one such thing that is greatly affected by your divorce. If you do get divorced, these are a few of the biggest financial impacts you can expect during and after the process.

Did you enjoy reading this article? Here’s more to read. How to Build a Strong Financial Foundation for Your Family