Divorce can be an emotional roller coaster for some. Not only can divorce be emotional, but it may also be expensive for some Alabama spouses. However, there are ways to make divorce less costly.
One way to make divorce less costly is for spouses to rearrange their budgets since they are now in a one-income household. This consists of being honest with themselves on what they can afford on a monthly basis. Before fighting over assets, spouses may want to ask themselves if they are still able to make payments on certain items on one income alone. Another way for divorce to be less costly is to develop a new retirement plan, since assets are usually divided.
Divorcing couples may want to change the beneficiaries who are listed on their retirement accounts to someone who is a family member. Lastly, the individuals may want to reconsider life insurance. Spouses usually need to purchase life insurance if they are liable for child support or spousal support payments. Sometimes, individuals who were covered on their former spouse’s policy may need to purchase their own.
Divorce does not have to be expensive. Those who can rethink what they can afford could potentially avoid financial implications instead of feuding with their soon-to-be ex-spouse over property and other assets. One of the assets that usually becomes the most unaffordable is the mortgage payment; sometimes it’s best to still own the house jointly or give the property to the other spouse. Alabama spouses can increase the chances of making the best decisions regarding their divorce by exploring all of their financial options.
Source: The Washington Post, “5 ways to keep a divorce from being needlessly expensive“, Jonnelle Marte, Oct. 31, 2014