How can you benefit financially after a divorce?

On Behalf of | Apr 6, 2021 | Firm News

Ending your marriage may feel like the end of an era. When it comes to finances, a lot of people imagine financial hardship after a divorce.

According to U.S. News, you may actually benefit financially.

Retirement fund control

When you divorce your spouse, this is one of the few times that you can pull money from your retirement account early and not pay the penalty. You can do this because of the qualified domestic relations order. When you withdraw, there is no 10% penalty. However, if you do not roll the money into an IRA, you still have to pay income tax.

Budget control

A lot of marriages end because of financial tension. As the marriage comes to an end, these fights do not become easier. However, once you finalize your divorce, you can breathe easier. You do not have to fight with your spouse over where you should spend money and save money. You have more financial freedom and do not have to worry about someone else being reckless with your money.

Priority control

Divorce may feel difficult to adapt to; it can also allow you to start fresh. For example, if you and your spouse decide to give up the family home, you might feel like you are losing a home, but you also gain more financial freedom. You can choose a new life for yourself. You can handle your finances without your spouse’s input.

Divorce does not always end in a lower bank account. In fact, as long as you act smart with your resources, you can end up in a better financial situation than you were before the divorce.