How divorce can affect finances in the short and long term

On Behalf of | Jan 27, 2020 | Uncategorized |

When people make the choice to get divorced, they likely know how emotionally-charged the decision can be. Divorce can often mean hurt or angry feelings as both parties come to terms with the end of the marriage and all of the surrounding circumstances. What they may not be as prepared for are the financial consequences of divorce. However, some studies show that divorce can have a long-lasting impact on people’s finances. Fortunately, experts have advice for people in North Carolina who want to minimize that impact.

First, a recent survey conducted by a financial services company found that a third of people responding felt their finances hadn’t completely bounced back even five years post-divorce. The results even suggested that men feel financial stress relating to divorce earlier in the process than women do. Men also reported feeling more stress over financial aspects rather than emotional ones. Women didn’t feel as much financial stress until the completion of the divorce process.

The study suggests that both people in a marriage need to involve themselves in the family finances, as those who did so seemed to financially recover from divorce more quickly. It’s not enough to be involved in the day-to-day expenses and income of the family either. Experts found that those who are involved in the long-term financial aspects of a family have a stronger personal financial picture after divorce. One interesting finding is that divorce seemed to increase the likelihood that a person would make sure to be involved in the shared finances in his or her next marriage.

Whatever the reasons people have for deciding to divorce, it is important that they consider the potential impact to their finances. In addition to consulting with a financial planner, people in North Carolina considering divorce may want to involve an attorney. Working with a family law professional can help ensure consideration for all aspects of a divorce.