Getting divorced often means a decline in income. If both spouses work and combine their income, going their separate ways means a decline for each of them. This corresponds with a rise in expenses. They lived together while married and shared the mortgage, for instance, but now they both have a mortgage, payments for utilities, insurance, taxes and the like. Overall, the cost of living goes up just as the income drops.
This can create a lot of financial pressure and some significant problems. Can you afford to live in the same neighborhood or do you have to move? Do you need to look for a new job? If you have children, can you afford to meet their needs? Does moving for financial reasons mean they have to switch to a new school or that they no longer live near their friends?
The truth is that financial stress is already common for Americans. Some studies claim that 75% of us will feel it to one degree or another. For nearly 25% of people, they’re trying to figure out how to deal with “extreme financial stress.” And that report came out in 2018.
A divorce can just make the stress you were already feeling that much worse. If you were barely making all of your payments on time with two incomes, what will dropping down to one really mean? How is a divorce going to impact your future?
For these reasons, it’s very important to understand your rights when getting divorced. You need to know how to divide property, what rights you have to certain assets and how things like child support and spousal support play into the equation.