When you think of divorce, you probably think of the emotional impact it has on everyone involved. Splitting up a family can be devastating for all, causing stress, anxiety and depression.
While divorce does have its downsides, it’s not all doom and gloom. Divorce actually has some financial benefits, which may be surprising, considering that the average cost of a divorce in the United States is $15,000.
It’s true: you may have fewer money troubles after a divorce. Read on to learn why.
Once you’re divorced, your money problems are your own. If you’re a saver, you no longer have to fight with your spouse over his or her spending habits. You are now free to do what you want with your money. If you want to make a purchase, you can do so without checking in with someone else. You also don’t have to worry about your spouse getting into your savings account and spending the money on unnecessary items.
One nice perk about divorce is that you get early access to your retirement account. There are only a few situations in which you can access the funds in your account without penalties, and divorce is one of them. As long as you use a qualified domestic relations order (QDRO) to split up assets in your divorce, you can withdraw the money before you reach age 59 ½ without having to pay the typical 10% penalty.
Having divorced parents can be beneficial for college-age children. This is because the Free Application for Federal Student Aid requires only the income from the custodial parent. Any alimony and child support that the parent receives must be included on the application as well, but there are still techniques available to minimize this income and help the student become eligible for more financial aid.
In order to get a fresh financial start, many people have to file for bankruptcy. A divorce can accomplish the same thing. After a divorce, you are no longer responsible for your spouse’s finances. You will be on your own, which can be a good thing. You no longer have to spend money maintaining a three-bedroom house or paying for a car you don’t use all that much. Instead, you can reap the benefits of downsizing and save money by renting an apartment instead. A divorce is a great time to think about how you are spending money and whether or not you are making wise decisions.
When making the decision to end your marriage, it helps to look on the bright side. Divorce has many downsides, but it can help you in some ways as well—even in terms of finances.
If you are divorcing, the Columbia divorce attorneys at the Law Offices of Todd K. Mohink, P.A. can help you with the legal, financial and emotional components. We have two offices to serve you. Fill out the online form or call (410) 774-5987 to schedule a free consultation.
7310 Ritchie Highway, Suite 910
Glen Burnie, MD 21061
30 Corporate Center
10440 Little Patuxent Parkway,
Columbia, MD 21044