Divorce is one of the most emotional and stressful things a person can go through in his or her lifetime. Many couples don’t realize how expensive it can be, however, due to the long-term impact of a divorce on finances. Alimony and child support are only a few of the monetary considerations that must be taken into account. An experienced Central Massachusetts family law attorney would also inform potential clients that items such as retirement, taxes and insurance may also have a life-long impact on a person’s financial well-being.
In the process of divorce, ending the relationship is generally first and foremost on the minds of the couple in addition to the division of assets. Also at the top of the list for couples with children are child custody arrangements and child support payments. It can be easy to lose sight on the long-term financial aspects of divorce.
Once divorced, income tax brackets will change. In many cases, the move to single filing status increases the amount of income taxes due. This can be an unexpected surprise once a divorce has been finalized. Retirement planning also drastically changes for many people after a divorce. Following a divorce, there are no longer two household incomes as well as a partner to share in the associated expenses. Long-term insurance is also something that a newly single individual needs to consider. Most married couples don’t have this type of insurance, as they assume their spouse will be around in the future to care for them.
For these reasons, it is imperative to enlist the help of an experienced Central Massachusetts attorney when contemplating a divorce. An attorney can assist you in developing the most optimal settlement agreement possible for your situation. All these potential financial pitfalls must be addressed in order to help ensure financial stability in the future.
Source: Forbes, “5 ways divorce takes your money,” Kenneth Rapoza, Mar. 12, 2013