Protecting Relationships

Protecting Relationships And Legacies

3 common financial issues you are likely to face after a divorce

On Behalf of | Mar 2, 2023 | Family Law

Even an amicable divorce is sure to come with a great deal of stress and difficulty. That said, you likely feel as though you can breathe a huge sigh of relief when the divorce proceedings reach their conclusion.

The unfortunate truth, however, is that you and your ex-spouse will probably continue to face certain financial obstacles even after the divorce. These issues might threaten to tear apart an already strained relationship, but you can handle them to the best of your ability by becoming informed ahead of time.

1. Tax effects

The IRS outlines various tax effects of divorce that may impact you and your ex-spouse after the separation. It is important to understand how matters such as child support, name changes, and other changes in circumstances will affect your taxes.

2. Retirement difficulties

Many divorcing individuals overlook the fact that any contributions made to retirement accounts during the course of a marriage are marital property. Some or all of your retirement assets may be subject to property division in the split, which may greatly affect your retirement plans.

3. Sell the family home

Perhaps the most immediately apparent financial challenge you will face after a divorce is the matter of your family home. If you maintain ownership of the house after the divorce, you might quickly come to the conclusion that it is strenuous to pay for a family-sized house on a single income. Selling the property and downsizing might be the best solution unless need the space for raising your children.

Overcoming financial issues quickly and efficiently enables you to return to normalcy after your divorce. If you also have a child to consider, it may be best to undergo mediation with your co-parent to resolve financial issues together for the sake of a healthy family dynamic.

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