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The financial implications of divorce

On Behalf of | Mar 18, 2022 | Family Law

The divorce process does not come without challenges. However, it is often the only feasible option for couples who are no longer compatible.

It can be tough to accept that a relationship is no longer functioning. This difficulty can also be accentuated if there are children involved. After the personal consequences of divorce have been considered, you also have to think about the financial impact your divorce may have.

Being prepared can limit any negative effects your divorce has on both your personal and financial circumstances. What’s important is that you remember you can come through the other side.

Your credit and divorce 

In the short-term, divorce might hit your credit score. You will have to shift your finances around after the separation, and you might even be left with more debt initially. Going from two incomes to one can be a significant adjustment, but with preparation, you can soon whip your finances into shape again. Focus on setting a budget that allows you to live comfortably but also try not to neglect your financial obligations. Making regular payments on time is one of the most effective ways to increase your credit score again, and it can be back to where you desire within a matter of months.

Consider your retirement

Throughout your marriage, you may have been contributing to a retirement account. Through the property distribution system in Florida, this could be divided between you and your spouse. You may have to adjust your budget so that you can contribute a little more to building your retirement savings back up.

While divorce can strain your finances, there are ways to manage this. Divorce doesn’t solely represent an end. It is also the chance for you to start afresh. To get the divorce settlement that you deserve, it will benefit you greatly to look into your legal rights in more detail.