Are you going through a divorce? It can feel like it’s one of the worst times of your life. When you got married, you never believed that you would have to go through a divorce eventually. However, with the divorce rate as high as it is, these things happen. It’s not something to be embarrassed about. It happens to a lot of people for a host of different reasons. What you need to do is make sure that you are finding ways that you can focus more on the positive. If you are getting a divorce, it means that there was something not working well in the relationship.
Sure, it can take a toll on your physical, emotional, and mental health to go through a divorce. However, you can come through the other side stronger than you were before, and this is a good thing. Your finances could be one of the areas where you end up benefiting the most. Let’s look at some of the surprising financial benefits of divorce.
Money, after all, tends to be one of the biggest causes of divorce. Whether it’s lack of money, spending the money recklessly, or doing other untoward things with the money, it can cause a lot of friction.
Budgeting Will Be Easier
Were you having trouble with keeping a balanced budget while you were married? Perhaps you had a spouse that refused to work and who was not contributing to the household. Maybe you had a spouse that would spend money recklessly, which could often make it difficult for you to pay for things like the mortgage, rent, car, insurance, food, etc.
These things will cause a host of arguments in the marriage. When you are getting divorced, one of the first benefits is that these arguments will stop. You no longer have to worry about what they will be doing with the money because they won’t be part of your life and draining that money from you.
If you have children, divorce also has the potential to make budgeting for college easier. The Free Application for Federal Student Aid (FAFSA) will only require the finance information from the custodial parent. Think about how this might help you. It means that the funding that your children could receive for college will be greater because of the reduced income that you have. Of course, you do need to remember that child support and spousal support that come from the non-custodial parent will need to be included in the FAFSA.
If you have been worried about what you will do to pay for your child’s college education, the divorce could help them to get more federal student aid. This can help to put your mind at rest.
Early Access to the IRA without Penalty
If you will be splitting up an IRA in a divorce, you could pull money out of the IRA early without having to pay a 10% penalty in some cases. You will want to speak to your divorce lawyers Mesa about this. Have the lawyer draw up an agreement called the qualified domestic relations order. This could help you to make the withdrawal without needing to face a penalty.
However, you also have to remember that if you take out the money, you will still need to pay income tax on it unless it is rolled into a different IRA. Figure out what makes the most sense for your finances.
Social Security Benefits for Older Divorces
You may not realize it, but in cases where an older couple gets divorced, there could be benefits available. If you were married for more than 10 years and you reach 62 still unmarried, it could be possible for you to file for Social Security benefits based on the historic income of your ex. Why would you want to do this? Doing so will allow you to wait until later to start taking your own benefits.
You Can Reset Your Financial Direction
When you get divorced, you get to reset yourself in many different ways. You can think about who you are and what you want out of life. You can start making decisions that are geared toward benefiting you rather than your spouse. Even though you might have less income when you are divorced, it doesn’t mean that you can’t save and prosper. You have full control of your financial future.
Women will typically make different decisions than men. Divorce allows each spouse to determine how they want to handle their finances. They can choose to be as aggressive or as conservative as they would like with their money. You are no longer beholden to someone else and their ideas of what should be done. Knowing that you are now in control can be quite freeing and give you hope for your future.
You Can Succeed and Thrive After Your Divorce
Of course, this doesn’t mean that getting divorced is easy or that it will be a picnic for you. There are still a lot of decisions that will need to be made regarding your children, property, finances, and more. However, knowing that there are some financial benefits to getting a divorce should give you some hope for your future.
Make sure that you talk with your Mesa divorce attorney or financial advisor about these tips and any other tips that they might have for you. Having some type of financial plan when you are getting divorced and after the divorce will be essential. Remember to look for the positive and you will find it.
When going through a divorce, you always want to be sure that you are working with a reputable attorney that knows and understands family law in Mesa AZ or any other area. Take some time to find a qualified divorce lawyer in your area that can help you understand the process and what you need to do and provide. A good attorney can help to take at least some of the sting out of the divorce for you.