There is no doubt that divorce can have serious financial consequences. These changes may take some Pennsylvania residents by surprise. It is important for people whose marriages are coming to an end to understand how a divorce may affect their financial situation both during the process and when it is resolved. Remaining secure after a divorce may require people to change how they think about finances.
In some ways, divorce can be a liberating experience for people. It forces them to understand and take control of their finances and be responsible with their money. They have the opportunity to develop important skills for the future.
The greatest financial impact of a divorce is usually a loss of income. This is especially true for the person who may have been reliant on the other partner as the primary, or even the sole, breadwinner. This has historically been more of a problem for women, but the rise of stay-at-home dads means that men may often find themselves in this position as well. A lower-earning spouse will likely receive alimony, child support or both after the divorce, but these payments don’t last forever. It is important for people to have a plan for growing their income.
Another significant change involves assets. Property division may result in the liquidation of many physical assets. Accordingly, people may want to consider the future assets they want before the divorce is finalized. Managing and negotiating assets to protect them from a loss of value is an important consideration for any high asset divorce. A family law attorney can sometimes negotiate a settlement on behalf of a client with these considerations in mind.