Our Chandler Divorce Lawyers are here to give you the advice you need to get the results you desire. Ultimately, divorce is terrible. From the cost of hiring a lawyer to losing an additional income, divorce can come at a high price. In addition, it is common for people to walk away from the proceedings with a lot fewer assets and savings for retirement. And on top of everything else, it also takes an emotional toll on a person. However, divorce doesn’t isn’t all bad, especially when it comes to financial benefits it can come with. While not a reason to run out and get a divorce, here’s a few financial benefits that could make a sad situation seem a little better.
- Easier and more control over budgeting: The end of a marriage often means the end of fights over finances. No more trying to figure out the priorities in the budget, especially if you’ve spent the past few years persuading or pleading your now ex-spouse to cut back on spending.
- Early access to your retirement fund: A little known fact is that divorce is one of the few times you would be able to access your retirement account early and not be penalized for early withdrawal. Though, it’s important to be careful when taking money out of your retirement account. It can be a risky move, but it is a nice option for the newly divorced when they may not otherwise have one.
- Better returns on investments: Divorce could mean better investment returns, especially for women. Men tend to be more aggressive when it comes to investments and take more risks. Divorce is a good time for women to take charge of their own retirement planning, which could be positive financially in the long run.
- Financial aid for the kids: Divorce has been known to be difficult for children. One good thing for them involves college financial aid. When it comes to signing up with the Free Application for Federal Student Aid, or FAFSA, you are only required to submit financial information from the parent that has full custody, instead of financial information both parents. Of course, child support and alimony received from the non-custodial parent will need to be included for FAFSA, though any additional financial assistance is helpful.
- Older divorcees have Social Security perks: Divorced spouses may be able to file for Social Security spousal benefits when they reach retirement age. You’re eligible for these benefits if you and your ex were married for at least 10 years. The best thing about this is your ex-spouse doesn’t even know you’re doing it and it won’t impact their benefits.
- Reevaluate financial priorities. While people are sometimes angered by the lifestyle changes caused by divorce, there is actually a lot of opportunities for them to rethink priorities and start fresh. Even major adjustments, such as giving up property, can be beneficial in the long run. It could be better financially a smaller house or even an apartment.
Divorce doesn’t have to mean a dwindled down bank account. Even with less income, divorced people can build wealth if they use their resources wisely. Of course, not everyone’s financial situation will improve with divorce, but it’s surprising how it can improve. It’s important to remember that getting a divorce isn’t something you should rush into, but if you find yourself in a marriage that isn’t working, don’t give up hope. You may still come out ahead when it comes to the financial benefits of divorce.
At Shaffer Family Law, we understand the fine details of the legal system and will give you the guidance you need to get through the divorce process, answer your questions, and be an advocate for you. If you are ready to move forward, we invite you to give us a call at (480) 470-3030 today.