Divorce can be very expensive or cheap, depending on a number of factors. If the parties involved can agree on the terms, or work together to seek agreement on terms that both find acceptable, then the potential financial impact may be lessened. If you cannot agree on anything, and one party appears to be making the process as difficult as possible, the divorce could prove more costly. Assets, any minor children involved and debts owed all factor into the marital dissolution process. Those individuals in Pennsylvania that are confronting these issues have likely already learned of the potential financial pitfalls.
After parents are divorce, work and visitation schedules sometimes become difficult, and the kids are often left in limbo. Funds are often necessary for child care related expenses, some of which may result in income tax savings. Speaking of taxes, a married couple normally pays fewer income taxes than a single person, and it may be important to plan for the possible additional obligations.
Retirement is also a factor that affects finance. A single person is, understandably, the sole contributor to their own retirement planning. To stay on target for the “golden years,” it may be crucial to put more money into a retirement plan after a divorce in order to ensure that sufficient sums will be available when needed. A divorced person is usually the only one contributing to living expenses that were once shared by two people. It may make sense to consult with a financial planning professional in order to make the transition from married to single.
Residents of Pennsylvania may be familiar with the typical costs involved in a divorce and its aftermath. Even if the parties are able to keep the lines of communication open, it may be smart for each to consult with a knowledgeable party. There are many options available to get post-divorce finances in order. Though the transition is not always easy, some may take comfort in realizing they do not have to face these important issues alone. There are a number of options that can be utilized for the asking.
Source: Tampa Bay Times, “5 ways divorce could affect your finances,” McClatchy Tribune, April 28, 2013