Our readers may know friends or family members who have gone through a divorce and would describe the process with one word: difficult. There is no doubt that a divorce is life-altering; for many people, it can take years to move on from both the emotional devastation and the financial ramifications. So, how will a divorce impact your finances?
Well, as a recent news article noted (caution to Canadian readers – the linked article is from the States; we do things a bit differently in Canada), the financial impact of a divorce can be hugely different based on one factor: whether or not the divorcing couple has children. If there are children involved in the divorce, issues like child support will be a part of the case. And, if one of the parents is ordered to pay child support to the other, that is a financial commitment that can last years. Falling behind on child support payments can lead to wage garnishment and other measures that can ruin one’s finances.
However, no matter whether children are involved or not, all divorcing couples will need to address the issue of property division. Depending on how long the marriage lasted and whether or not the couple had a prenuptial agreement, dividing assets can be a difficult and costly process. Debts must also be addressed.
Overall, the financial impact of any divorce will vary widely based on the individual factors of the case. Also, some divorcing couples are better able to agree on many aspects of the legal process, including the finances, which can save money. In the end, divorcing couples who contact a family law attorney to answer their questions may be in a better position to assess their options.