Inflation can affect anything involving money and finances, including divorce. For example, it can cause the overall costs of getting a divorce to increase.
It may also affect the main elements of most divorces — marital property, spousal support and child-related issues. You may not think the economy matters in divorce, but what you don’t know could harm your case.
Possible child support problems
Inflation means your dollar does not stretch as far as it once did due to gradually rising prices. If you are unprepared for price increases, the support you receive may soon seem insufficient. Ask your counsel about possible ways to obtain a child support order that can accommodate rising expenses.
Lower spousal support payments
You might assume that residing in a place with a high cost of living like Sonoma County ensures an ample award for those who qualify for alimony. However, the court will also account for your ex’s cost of living when making alimony decisions. Although courts try to make decisions that preserve each party’s established standard of living, inflation could interfere.
Increased marital property values
One potentially advantageous aspect of inflation is that it might make your marital property more valuable. Assets like real estate could add more value to your share of property than you might expect. As such, consider pressing to obtain potentially lucrative marital assets you might otherwise decline during your negotiations.
Accounting for inflation and other economic issues as you’re divorcing is always a good idea. So is having sound legal and financial guidance as you make important decisions throughout the process..