Going through a divorce is one of the most difficult things a person can experience and can leave you feeling emotionally drained. Unfortunately, a divorce can be devastating on your bank account as well. Splitting up assets, joint accounts, real estate, and other shared property can have a major impact on your finances. In the United States, the average divorce will cost approximately $20,000. Additionally, the cost could be higher when you factor in a loss of tax benefits and reduction of a double income. Some people might start to wonder if they can even afford to get a divorce.
The way property and assets are divided in a divorce depends on many factors. Typically, you will exit the marriage with whatever you had when it started. In Connecticut, the law requires that all marital property—generally speaking, property obtained or earned during the marriage – be divided in an equitable manner. “Equitable” does not mean equal, however, so one spouse may receive more assets than the other. In some cases, there will be a prenuptial agreement in place that indicates each party leaves the marriage with a predetermined set of assets.
If both parties can’t agree on how to divide the assets, the court will make a decision based on the information they are provided and what they believe is an equitable division based on all of the circumstances of the case. This can result in the loss of half or more of your assets and property, which is why working with a skilled divorce attorney who can advocate for you is so important.
Filing as a married couple have tax advantages such as a higher deductible, tax credits, and deductions that are lost when you switch over to filing as a single person. One financial hit that people might not consider is that the division of assets often requires cashing out their joint accounts and this money is typically considered taxable income. When dividing an IRA or another investment account, you could be charged any early withdrawal fee as well (usually this is a percentage of the total amount in the account).
If you are the primary earner in the relationship, there is a good chance that you will be required to pay child support to your spouse in the event of the divorce. Generally, child support will last until your children are no longer considered minors (over the age of 18), but sometimes the support will last through college. Additionally, if you had been supporting your spouse financially during the course of your marriage (perhaps they were going back to school or taking a break from work), you might be required to pay spousal support as well.
When you’re faced with the difficult financial implications of a divorce, it can be overwhelmingly stressful. Working with an experienced divorce lawyer can help you navigate the process in the most favorable way possible. The attorneys at the Law Offices of Piazza, Simmons & Grant, L.L.C. have extensive knowledge when it comes to Connecticut divorce law. They can help you with property division, review the financial aspects of the divorce, and will work to achieve a just settlement. Call us at 203-348-2465 to set up an initial consultation or contact us online.