How does divorce affect your finances? Oh, it does have a significant effect, all right. In most cases, divorced couples need to increase their income to 30% to cope with their new life and expenses. If you want to be wealthy and financially stable, don’t get a divorce. Is divorce expensive and difficult? Yes, it is, especially when it comes to dividing the assets. Moreover, the toll of divorce can have a different effect on a different party. What are they?
Divorce and Women
In most cases, women would be the one who suffers the most when the divorce happens – especially in the first year. This condition basically depends on several things. First, the number of money she contributes to the family after the divorce. Second, the willingness of the husband to provide child support.
Even when the woman works and owns her own income, the divorce will make the financial standing a bit wobbly. In the previous case, she and the husband worked together to provide for the whole family. Now, she probably only has herself to care for her kids. If the husband is kind enough to provide stable and constant child support, her financial condition may improve. However, if the husband neglects his responsibility and obligation, she only has herself to provide for the kids. Things will get worse if the woman doesn’t work.
The husband’s willingness to provide for the kids will also affect her financial situation. Unfortunately, not many husbands would even care about the wife’s financial situation. It is no wonder if many women experience bankruptcy after the divorce. They often have to get financial help to survive.
Divorce and Men
In most cases, men may suffer from a decrease in their income, ranging from 10% to 40%. Child support and other payments related to divorce are the major cause. Not to mention if the wife also contributes to the family’s finance.
However, there is interesting data about this condition to men. If the husband contributes less than 70% to the family’s finance, then he may suffer the most from the divorce. On the contrary, if he contributes more than 80%, then it won’t affect him so much. If the husband shares custody or has the custodial right, he will have additional expenses.
Divorce and Kids
Divorce also has a direct impact on the kids, in terms of losing health insurance or the difficulty of going to college. Besides having less time with both parents, they may have their own struggle at school. If one of the parents only worked part-time for the divorce, now they have to work full time which means that less time will be spent with kids. Moreover, kids may lose health insurance coverage. The opportunity to go to college may be gone once the divorce happens.
This is the worst scenario of the impact of divorce on your life and your finance. Of course, not all cases end up ugly. Some cases even go smooth without any dispute or conflict. A divorce firm on Cape Cod aims to “Take the Nasty out of Divorce”, which can be achievable! But then again, you can be sure that a divorce will have an some effect on your finance, some are small and some are substantial.