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Divorce doesn’t have to ruin your finances

On Behalf of | Jan 1, 2021 | Divorce |

Divorce changes a person’s life in many ways, and those who pursue one likely know that fact going in. There are many frightening stories you may have heard from well-meaning friends or family about how divorce can wreak havoc upon one’s finances, but that is only part of the picture. There is no denying that divorce generally impacts personal finances, and if one isn’t careful, that impact can be negative.

However, that doesn’t have to be the case, and many people find that their financial situation actually improves post-divorce. Many people of varying income levels in West Virginia have the ability to make choices about money that can help them in both the short and long term. If ending your marriage is in your future, here are some unexpected financial benefits to divorce.

Immediate financial benefits of divorce

If you were the type of person who let your spouse make most or all of your financial decisions, divorce lets you call your own shots from now on. That may be daunting for some, but it can also mean the ability to set your own budget. Some find that divorce lets them reexamine their money priorities, meaning you can determine where to save or where to allocate more money.

You may even find ways to increase your wealth and make use of resources you hadn’t considered. Ever thought about taking an early withdrawal from your retirement fund? Divorce allows for that and you won’t incur the usual penalty; however you may still pay income tax if it doesn’t go into an IRA.

Future financial benefits of divorce

Divorce may also mean long-term financial improvement in several different ways. If you and your spouse shared investments, and he or she is the type to take more investment risks, you can change that. A more conservative approach to investing might yield better results over the years.

Down the line, if your children need money for college, they won’t have to include your ex’s income on the Free Application for Federal Student Aid if you are their custodial parent. You also may be able to access Social Security benefits based on your ex-spouse’s income. There are numerous ways you may come out ahead financially, long after finalizing your divorce.

Your new future awaits

There are numerous professionals who can help you through the divorce process and help you take control of your future. A family law attorney is a great resource if you’re getting a divorce. Divorce may seem intimidating, but it doesn’t have to be that way.