The implications of a divorce are far-reaching in many aspects of your life. While you surely have enough on your plate in adapting to a new family dynamic and finalizing matters of asset division, you should also consider your financial future.
Divorce can bring with it a number of financial issues that you might face before, during and after the split, due largely to the need to support yourself on solely your own income. By familiarizing yourself with potential financial issues ahead of time, you can approach these obstacles with the right frame of mind.
1. Paying outstanding debts
Debts incurred during the course of a marriage are marital property that is subject to division similar to other assets in a divorce. While you will also receive an equitable amount of valuable assets as well, it is possible that you will walk away from the marriage with more debts than you can handle, especially if your spouse had significant debts in their name.
2. Affording the family home
If you retain ownership of the family home in your divorce, you might find it difficult to justify paying for a property meant to house more people. Even if you also receive primary custody over your children, you might consider downsizing to a smaller home in the wake of the split.
3. Fulfilling tax obligations
The most unexpected financial issue you might face after a divorce is your sudden tax obligation. The IRS outlines specific tax effects resulting from a separation that you should keep in mind.
Coming to terms with the mental and emotional impacts of a divorce should be your primary concern. By taking proactive steps in regard to the financial issues of a divorce, you can focus more on what matters most.
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