The financial challenges of divorce

On Behalf of | Aug 2, 2023 | Divorce |

Divorce presents many financial challenges, some for the short term, some for the long term. If you are contemplating divorce, it is important to think about how you will manage your finances both during the divorce and moving forward.

Short-term financial challenges

Divorce presents some short-term financial challenges. First, you will need to pay for legal assistance. Some people may try a do-it-yourself divorce, but this is often a mistake.

Divorce can become very complex, very quickly. Legal issues can arise that you do not know how to handle. Professionals understand the legal process of divorce and can help you avoid costly mistakes.

Second, you will need to afford housing on your own. You might move out of the shared marital home during the divorce process or immediately afterward. If so, you will need to afford rent on an apartment and possibly furnishings for one. If you are retaining the marital home, you will need to afford the mortgage and other costs of homeownership on your now-single income.

Long-term financial challenges

At the top of the list of long-term financial challenges for divorcees is retirement. While married, you and your spouse likely depended on combining your retirement assets to see you comfortable in your old age.

Once you divorce, you may be relying only on your own retirement assets moving forward. If so, you will want to act as soon as possible to bolster your retirement savings, especially if you are returning to the workforce for the first time in years.

Divorce can present financial challenges, but some people find that ending their marriage is for the best, even if it means overcoming some monetary issues. The costs of divorce and the costs of moving into single life can be daunting, but it is important to accept and prepare for them if it means preserving a healthier, happier future.