If you are considering a divorce, you should know how it can impact your financial life.
Divorce is both emotionally and financially stressful, so informing and preparing the process can help you be ready for any surprises that come your way.
Here are some surprising ways divorce can affect your finances:
1. Your health insurance
Depending on how you have insurance while you were married, you may need to pay for your insurance you get divorced.
2. The real-life costs of child care
If you had children, you might be expected to pay child support or have child support, which may not cover all your expenses. A decrease in your finances can also mean fewer opportunities for your children to do activities like camp, sports, or music lessons.
3. Refinancing and your credit score
The court tends to divide assets and debt between both spouses in the divorce process. The court will also probably indicate who is responsible for paying specific bills. If you are wondering how you can avoid this, just know it is not an easy process.
4. Your retirement plans
Many people do not realize that just because they earned through their job does not mean it is all their. Retirement plans are considered “marital property,” which means you and your spouse are both entitled to a portion of the money in this account during a divorce settlement.
