Some people delay divorce because they are concerned about the various costs that can arise. From loss of a spouse’s income to court fees, it is true that divorce is often an expensive undertaking. In addition to the potential of leaving a divorce with fewer assets and income, divorce can also have a devastating impact on a person’s emotions. Not everything about divorce, however, is bad. Some people discover that there are a number of financial benefits provided by the divorce process.
More Control Over Finances
The end of a marriage means that you will no longer have any fights with your former spouse about how money should be controlled and spent. Instead, you will no longer have to base your budget off of your former spouse’s input. Many people following a divorce discover that they enjoy more financial freedom than they expected.
Early Access to a Retirement Fund
Divorce is one of the few occasions when a person is able to withdraw money from a retirement account and not pay a penalty fee. This is because following a divorce, accessing that money is exempt from penalties. Having access to this money can provide you with financial freedom that you might not have expected.
Improved Investment Returns
Many people discover that divorce results in better investment returns. This advantage is most frequently realized by women, who have the chance following a divorce to take over their own retirement planning.
Increased Financial Aid for College
Divorce is a traumatic event for children involved, no matter how old they may be. Children of divorce, however, tend to realize advantages when it comes to applying for college financial aid. Federal Student Aid only requires financial information to be provided by the custodial parent instead of both parents, which can enable a child to qualify for assistance when they would not have otherwise.
Social Security Advantages
Divorced individuals are sometimes able to file for Social Security benefits from a former spouse at the age of retirement. To claim these benefits, two spouses must have been married for at least 10 years. Withdrawing benefits in this way does not have a negative effect on the amount of Social Security benefits that the former spouse will receive.
A Second Chance at Defining Financial Goals
Some people following a divorce become upset by the numerous lifestyle changes that occur. Finance experts, however, report that this change in a person’s life allows a person the opportunity to rethink his or her finances and to start anew. Many people following a divorce discover that it is easier to save more by living in a smaller residence and spending less on various costs, which can be empowering.
Speak with an Experienced Divorce Attorney
There are a number of challenges that can potentially arise during the divorce process. If you have questions or concerns about this process, you should not hesitate to speak with an experienced family law attorney.
Contact Vayman & Teitelbaum, P.C. today to schedule a free initial consultation.