Photo of Professionals at McCoy Fatula, APC
Photo of Professionals at McCoy Fatula, APC

The long-term financial impacts of a divorce

On Behalf of | Jun 3, 2023 | Divorce

When you make the decision to end your marriage, you know this choice will affect you for years to come. It will not only impact the amount of time you spend with your children, but it will also affect other aspects of your life long-term, including your finances. It is important to understand the varying ways your divorce could affect your life and take steps to ensure that you seek terms that will set you up for as much success as possible.

As you consider your divorce agreement and make other decisions that will affect you for years to come, you will need to keep your focus on the future. While it is normal and understandable to have strong feelings during your divorce, temporary emotions are likely not indicative of what will be in your best interests long-term. It might be necessary to set temporary feelings aside and keep your focus on the future.

Changes you will experience

One of the most significant changes many spouses experience when they go through divorce is adjusting from two incomes to one. Combined finances make it easier to manage costs associated with home ownership, taxes, insurance and more. When you will be living solely off your income, and perhaps some financial support from your former spouse, adjustments will be necessary. Other financial changes you will experience during your divorce include:

  • Real estate — You may have to sell property, relinquish ownership or divide real estate, including the family home, vacation properties, rental properties you own and more.
  • Taxes and support — You will find that your tax situation will change after divorce, and a factor that will impact that is whether you are paying or receiving financial support to/from your former spouse.
  • Debt — There will likely be a division of marital debt, which is debt you and the other spouse jointly accumulated over the course of your marriage. The division should be reasonable, and you can negotiate how the two parties will divide the debt.

These are only a few of the ways that your California divorce will impact your financial life for years to come. It is important not to underestimate the potential changes you could experience, striving to secure terms that will allow you to have security and stability for years to come. To do this, you may find it helpful to seek the guidance of a knowledgeable professional as you move forward.

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