Connecticut residents who have gone through a divorce know what a toll this process can take on their finances. It is important for individuals to be as proactive as possible as they try to rebuild their life and get back on track financially. Here are a few tips to help.
When couples in Connecticut and around the country divorce, asset division is an important element of the process. This is because there is an assumption that both parties should be able to leave a marriage with the resources needed to rebuild their finances and move on with their lives. Doing this requires careful accounting of a couple's finances and debts.
The financial aspects of a divorce can linger on for many Connecticut couples long after the practical issues have been settled and the romantic relationship is over. However, when there is a wealth disparity within the marriage, one party may be tempted to "protect" some assets from the other spouse outside of the framework of the law. Equitable distribution means that not every asset will be divided directly in half. Nevertheless, some spouses, whether motivated by greed or a desire for revenge, continue to hide assets in order to prevent them from being included in the divorce settlement.
For individuals in Connecticut and elsewhere who are going through a gray divorce, the psychological and physical health impacts can be major, especially if they had previous health problems. However, these health impacts should be considered since divorce rates for those who are 50 years of age or older have nearly doubled since 1990.
The aftermath of a divorce can be difficult for children to handle as they try to become adjusted to a new life. However, there are some things that parents in Connecticut can do to protect their children after a divorce and ensure that they are able to enjoy their new life.
Twice as many millennials are keeping their finances separate after marriage compared to baby boomers and Gen X, and that's not the only difference. Some Connecticut millennial couples may be among the growing number who are also making sure they have a prenuptial agreement in place prior to marriage. The American Academy of Matrimonial Lawyers reports that these are on the rise in general across all age groups but particularly with millennials.
Debts taken on during the course of a marriage are generally considered part of the marital estate, and they are divided as part of a divorce just like assets are. This can lead to bitter disputes when the debts in question are student loans. Divorcing spouses may resent making payments on loans that helped their former husbands or wives to attend college, and in states with equitable distribution laws they may not have to. Connecticut is one of these states.
The Social Security Administration allows spouses to receive retirement benefits based on the contributions made by their husbands or wives if doing so would be advantageous for them, and this eligibility is unaffected by divorce as long as certain requirements are met. In order to receive benefits based on their former spouse's earnings records, spouses must have been married for 10 years or longer prior to divorcing, their former husbands or wives must be entitled to Social Security benefits, their spousal benefits must be higher than their individual benefits and they cannot have remarried.
Some husbands in Connecticut do not take it so well when their wives become the primary breadwinners. Research shows that such a situation often leads to divorce, especially when the partners harbor more traditional views toward marriage.
For years, the common and alarming statistic was that half of all U.S. marriages end in divorce. Although there was a period when the divorce rate was nearly that high, it came at a time when divorce had first become widely available and socially destigmatized. Since then, the divorce rate has been declining steadily for decades.