How Will a Divorce Affect My Financial Situation?

What you need to know about spending, credit, and other factors that affect your financial situation throughout the process of a divorce.

Divorce is such a common practice today and, because of this, it can be difficult to imagine such a hefty financial burden attached to it. Regardless, people every day choose to go through the process because the alternative (staying with their spouse) is no longer an option. However, did you know that a typical divorce can cost upwards of $20,000? On top of this, it can continue to be an expense for years after its finalization.

Remember, when two people are going through a divorce they are shifting from a shared/combined income to paying for almost two of everything with that same income. When earnings are the same and payments are nearly doubled, people are bound to face financial difficulties. Below are some of the ways a divorce can impact your financial situation.

It Can Take a Toll on Your Credit Score

Paying your bills after a divorce can be extremely difficult. If you’re now forced to pay for bills you had been previously paying jointly or have been purchasing more (and facing late payments) your credit score could be seriously impacted.

Additionally, you’ll want to make sure that joint accounts are being paid off. If you have an agreement established as to who will be paying what during the divorce process, you should make sure that debts and bills are being paid off as they are supposed to.

Alimony (Spousal Support) Can Make an Impact

Alimony that’s granted through a divorce is a very subjective thing. First of all, alimony can only be granted to a couple who has been legally married for 10 or more years. The amount of alimony paid by the primary earner depends on the current situation of each individual. If there is a child involved in the divorce, child support will be calculated first, and following that, a financial agreement will be made. In many cases, wealth is distributed so both individuals have an income that is approximately the same. The one paying alimony may be relinquishing a large amount of their paycheck for years after the divorce to maintain a financial equilibrium between themselves and their former partner.

Fees for a Lawyer

When going through a divorce, you will need to be backed by a professional legal team. No matter how easy you and your partner choose to make the process, there will still be many fees owed to the lawyers you have chosen. These add up on top of other fees, especially when agreements are difficult to come by throughout the process. Couples will run into less financial difficulty when a divorce is handled amicably — which is easier said than done.

Wilson, Howser, Oliver, & Turner Attorneys at Law

If you’re in need of divorce lawyers for your legal separation, contact our firm in Murfreesboro, TN at 615-895-0030. Specializing in all aspects of divorce law, our professional team can help you through this trying time.