Getting divorced can take an emotional toll on any couple, but it can also have a substantial financial impact as well. If you and your spouse are planning on divorcing, there are some financial aspects of divorce to be prepared for.
According to experts, it is important to act quickly on all financial matters. For instance, joint credit accounts need to be examined. Credit scores can be impacted negatively after a divorce if the couple shared any credit cards, a mortgage, or other loans. In some cases, the court may order a division of debts, or you may come to an agreement with your soon-to-be ex. Without these accounts being divided, both parties remain financially liable for debts. So even if you pay off any debt you incur, you may suffer negative credit repercussions if your former spouse racks up debt and fails to make timely payments.
In addition to debt division, there is asset and money division to consider. The more money, property, and assets that a couple shares, the more financially complicated a divorce can be.
Aside from the asset division and credit drawbacks of divorce, there are other financial aspects to consider. With some divorces, alimony is one aspect that must be decided on. Also known as spousal support, alimony payments are monthly payments that are made from one former spouse to another. This can be a complicated financial issue before and during a divorce, and for many years following a divorce.
Similar to alimony payments, child support payments are made from one spouse to the other who has custody over any minor children. Who will have custody, who will make the monthly payments and how much these payments will be can all be very complex issues and have a substantial financial impact on any divorce.
Finally, there are legal fees to consider. The court will usually make a decision as to whether or not each party will be financially liable for their own legal expenses, or if one individual will be liable for paying for more than just their share of legal expenses throughout the divorce.
For some people, a divorce can be financially devastating. However, if you are receiving structured settlement annuity payments, we can buy structured settlement annuity payments from you for a lump sum of cash now. The lump sum of cash you receive can be used to help you pay for any bills and expenses that may have otherwise become more difficult to pay for since a divorce. If you’d like to know more about how we can buy structured settlement annuity payments from you, contact Peachtree Financial Solutions today.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.