Financial Consequences of Divorce

Financial Consequences of Divorce

Financial Consequences of Divorce

Many people already know that divorce often comes with child support payments and the division of total finances between both parties, but not everyone realizes that some divorces can result in poverty for one of the partners if an unprepared deal is made in court. Close to 50% of divorces lead to poverty afterward in the U.S. This is because the cost of living for a single parent with one job while raising a child can be expensive. Household incomes after the couple split up drops by 42% of the original combined income. However, preparing ahead of time by speaking with a family lawyer could potentially prevent this financial crisis from happening.

Financial Struggles of Divorce

Both partners have the potential to suffer financially after a divorce, but the financial struggles that women face often include falling into poverty, losing health insurance due to this low-income adjustment, and some may even lose their home. Women may then move in with a relative or close friend, especially if they are the primary caregiver of a child. Public assistance programs and child support may be able to help with some of the costs of living, but not in every case.

If before the divorce, the man was only contributing 80% or less of the household income, he tends to suffer financially afterward. Child support expenses can remove a big chunk of his paycheck, which may lead to further financial struggles like paying the bills on time.

Causes of Financial Problems

There are several factors that work together to destabilize one’s finances during and after the divorce process. As many of you may already know, going through a divorce is not free. The costs of divorce include court fees, legal fees, counselor payments, and living expenses if one of the partners moved out. These are just the expenses before a divorce is finalized.

Financial Consequences of DivorceSome people may fall into a sad state or depression, in which they forget to take care of certain responsibilities that could help them financially during the court process of divorce. For example, someone may not collect adequate records of their financial records, which is key for providing evidence of assets or things that belong to you. Your partner may claim something in the house that was actually given to you as a gift. In other cases, one partner may lose the desire to fight for potential assets like additional income, side businesses, retirement plans, and pay stubs.

Seeking Help from a Family Lawyer

To avoid losing what is rightfully yours, consider seeking legal counsel before finalizing a divorce in court. An Oklahoma divorce lawyer will be able to help you manage your financial situation, prepare for what could happen afterward, and can help you collect evidence to ensure that your assets are protected. If you are about to start the process of divorce, then contact Putnam Law Office at (405) 726-1010 for consultation. Mr. Putnam is an Oklahoma City, OK attorney who puts clients first and will work with you to protect your rights.

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