Can You Afford To Get A Divorce?

On Behalf of | Jul 26, 2023 | Blog, Family Law

Divorce is a major life change that often comes with significant costs, including legal fees, taxes and charges associated with splitting assets. Additionally, life after divorce can alter your finances and budget significantly.

If you are contemplating divorce, it is crucial to consider the financial implications and determine whether you can afford it.

Assessing your current finances

Before you initiate a divorce, it can be helpful to closely examine your income, assets, expenses and debts, as well as those of your spouse. Because California law distinguishes between separate and marital property, you should also consider which assets a divorce would directly impact. Any property you or your spouse obtained during your marriage could be subject to separation in your divorce settlement.

Anticipating divorce expenses

Legal representation and court fees can affect your budget when you go through a divorce. If possible, consider pursuing more affordable and efficient methods, such as mediation, when divorcing. Contested divorces sometimes require litigation and forensic accounting to resolve, which can be costly.

Separating financial assets and real estate holdings can add expense to your divorce. It can be pricey to sell your home and move to a new location. You should consider the tax implications of divorcing as well.

Financial planning after divorce

Life after divorce can be hard on your budget, as you must now pay for utilities, insurance and other services on your own. You might have to adjust your lifestyle if you earn less or have less wealth than your spouse. Child support payments can also impact your monthly expenses.

Taking time to evaluate your financial circumstances and consider the potential budgetary implications of divorce can help you make an informed decision.