Many Californians know that divorce can create lots of financial turmoil, even if only in the short term. However, there are some potential financial benefits that can emerge during and after the divorce process.
Thrifty individuals who were married to a spendthrift may find that they are in a much better financial situation within a few years after the marriage ends. They will be able to save money as they wish, budget appropriately and decide when spending is appropriate. Conversely, spouses who are more likely to take financial risks may find themselves being able to invest more aggressively, earning higher returns.
Another financial benefit of divorce is that financial aid for college students is based on financial information provided by a custodial parent. It may be possible for attorneys to structure a divorce settlement so as to maximize the amount of aid that a student can receive once he or she starts school.
If either or both spouses have retirement accounts, the divorce court may issue a qualified domestic relations order as part of the divorce settlement. This can allow spouses to cash out their retirement accounts to meet asset division requirements without having to pay an interest penalty. In some cases, the spouses may be able to reinvest their funds in specific securities that could be financially beneficial.
Individuals who are considering divorce and concerned about finances may benefit from speaking with a family law attorney. The lawyer may be able to review the client’s financial situation and make recommendations regarding strategies that can preserve current assets and income while minimizing the impact of shifting to a one-income household.