Family First
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How divorce may actually help your financial situation

On Behalf of | Nov 6, 2020 | Divorce

In Tennessee and around the nation, many of the problems seen by married couples revolve around the topic of money; it is a leading cause of couples deciding to file for divorce. Ending a marriage can be a very daunting situation for someone who may not be in a financially stable situation. However, in terms of finances, divorce isn’t all bad. The following includes a list of financial benefits that divorce may bring into your life.

Budgeting becomes easier

When you don’t need to consult with someone about every dollar that comes in and out, your budgeting process becomes that much easier. This means no late nights arguing about what needs to be cut or added to the budget. This is incredibly beneficial to individuals whose spouses overspent each month.

Access to retirement funds

Normally, if you want to withdraw any money from your retirement funds, you will have to pay an early access fee. However, divorce is one of those few instances where this fee is waived, thus allowing you to have cash on hand if you are dealing with other divorce expenses. It should be noted that you may need to pay income taxes on this withdrawal if an IRA does not control it.

More financial aid for your children

When a state determines how much financial aid a student will get, officials will usually look at the household income. Two working parent households will tend to receive less financial aid than that of a single parent. This means your divorce may cover a considerable amount of your child’s college tuition.

Although the benefits are clear, you first need to ensure that your divorce goes as smoothly as possible. Having an attorney who is experienced in family law may be critical to bringing you a positive end result.