Life throws us many obstacles that can wreak havoc on our financial situations. One of those obstacles is divorce. Many couples are getting divorced and having to deal with some real financial concerns. If you’re thinking about getting divorced, here are some finance issues you’ll come across:
We all know that debt is a serious financial issue in this day and age. Most people will end up in debt, and spend years paying it off. When you’re married, and the two of you incur debt, you both work to pay it off quickly. But, when you divorce, who gets the debt? Does it stay with one person or will you have to split it? This is a huge financial concern of getting divorced; figuring out how to split the debt between the two of you. Your best bet is seeing an attorney or financial advisor to help you out.
When two people are married, it’s normal to go out and buy a house together. Usually, you’ll both use a bit of your personal savings to come together and put down a deposit. Then, you get a mortgage together and have a lovely house to start a new family in. But, when you get divorced, only one person can have the house. Both of you can’t live there, so who will keep it? There are lots of complicated issues surrounding divorce and property settlement. Particularly if the divorce isn’t amicable. Sometimes, a divorce can be quite friendly, and one party will let the other have the house. Other times, it can be more complicated. Plus, what happens when the house eventually gets sold? Where will all the money go? Who is entitled to how much? There are tonnes of money involved here, it’s a huge financial concern.
Pensions & Retirement Plans
Everyone will reach a certain age when they’re required to retire from work. When this happens, you get given a pension and have money paid into your account each month. And, should you die, your pension will get passed on to your spouse. However, what will happen if you get divorced? Now, you have to figure out where your pension will go. It’s important that you contact the authorities and discuss this with them. Otherwise, if you pass away, your pension could end up going to your ex-spouse. You might not want this to happen, as you may have a new spouse that you wish to pass the money onto. So, get it checked out and make sure all the forms are to see where your pension will go. Also, you might have agreed to a retirement plan when you were younger. Both you and your spouse would put money into a pension pot. Obviously, if you get divorced, this pension pot becomes useless. You need to figure out who gets what, and how you can split the money.
It’s important you know of any financial concerns before you start the divorce process. Once you understand the troubles that lie ahead, it can be easier for you to prepare.