In addition to the devastating impact on family relationships, divorce can turn out to be financially damaging. There’s a possibility your income will be affected or find yourself leaving your marriage with deep debt, an issue that could damage your credit score. Understanding the overall financial impact of separation or divorce makes it easier to learn different ways of protecting yourself. Consulting with an experienced Denver divorce lawyer could help make the entire process less expensive and less painful.
Alimony and child support
Child support and alimony are among the central financial matters associated with divorce or separation. The child support payments are determined in accordance with the state law under which the divorce was granted. Most state laws and guidelines account for issues like the parents’ income, custody agreement, and the number of kids.
Once you are ordered to make child support payments as an integral part of your divorce agreement, the law requires you to adhere to the order given. These payments can be adjusted periodically, and you should analyze these payments and ensure they fit into your monthly budget.
Spousal support is also another potential financial obligation associated with divorce. It is separate from child support and is perceived as a temporary measure to help the spouse whose income is likely to shrink dramatically after the separation. Alimony has a specified end date, just like the child support payments. Besides, these payments are likely to be incorporated into your monthly post-divorce budget in case the court issues an order that requires you to make these payments.
If you will be receiving alimony or child support, it’s recommended to consider your mind as well. These payments can help cover your daily living expenses. However, if you can take care of your monthly bills with what you’re earning, alimony or child support will be an extra income. Remember, both child support and alimony payments have an end. So, you should think about how you will reshape your budget to fit your needs.
Protecting yourself in a divorce
It is recommended to sign a prenuptial agreement as it offers financial protection to both parties in case they choose to divorce. And your next line of defence will be your knowledge. Though it is important to act together when in a marriage, it is upon you to learn more about financial management. You should be aware of your investments, family income, and debts, real estate, and other assets.
If divorce is inevitable, try as much as you can to get all joint bank accounts and probably an individual account. In this case, it is essential to consult with your attorney or financial expert before taking your financial assets from the joint account. It’s also wise to cancel any joint credit cards you opened and probably get new credit cards under your name. And if you intend to acquire a home in the middle of a divorce, it is important to understand the relevant legal restrictions and requirements.
Featured Post – Please see disclosure page for details