Financial Myths About Getting a Divorce
If your marriage is on the rocks, one of your many worries is probably the impact divorce will have on your financial life. We can support you with a thorough analysis of your assets and understanding of the financial impact of a divorce, but first read these three widespread myths of the financial impact of divorce.
My Money Is My Money, and Your Money Is Your Money
Some people believe that if they keep the money they earn in separately titled bank accounts, it is “their money”, but this may or may not be true
Whether your money is “your” money in the context of divorce depends on state law, how the money was earned, whether it was inherited and whether you live in a community property state or not.
To obtain accurate predictions, rely only on information provided by an attorney or certified financial divorce analyst licensed in your state of residence.
After the Divorce, Both Parties Will Enjoy the Same Standard of Living
When there are plenty of assets to go around, both parties are able to enjoy the same or similar standard of living they did before the divorce. However, many American families do not own adequate assets to allow this to happen. Therefore, although many states include the “standard of living” as a factor to be considered in spousal and child support, the economic realities are that it costs more to support two households than it does to support one. As such, it is often the case where neither party enjoys the same standard of living after a divorce.
A Nonworking Spouse Will Get Alimony for Life
While it is usually true that nonworking spouses will receive some amount of alimony, the time period is often limited to that necessary to allow the person to get back on his or her feet. This type of alimony, usually known as spousal support, is defined by the laws of the state in which the divorce occurs.
Unless the marriage was very long and one of the spouses is not working, it is unlikely that permanent spousal support will be awarded. Usually, a judge will award temporary or transitional alimony to allow a nonworking spouse to obtain a job or an education with which he or she can become self-supporting. In short, spousal support cannot be relied upon forever.
This article is a service of Kundani Chang Khinda Wilson LLP. We are an award-winning law firm that specializes in business and estate planning for clients like you. The goal for every family is to stay educated on all topics like this, avoid probate, avoid estate taxes, and build a legacy for you and your loved ones. What sets our firm apart is that we build lasting, lifelong relationships with our clients. They rely on us to keep them updated, provide sound legal counsel, and be there for them immediately if any problems should ever arise. The best part is we don’t charge hourly fees to our families, so you never have to worry about speaking to us. If you’re ready to keep your family out of Court, contact us today to schedule an initial consultation or visit our website at www.kckwlaw.com.