Financial Impact of Divorce
Divorce affects many areas of a person's life. Divorce has an emotional effect on the couple, their children, and families, friends and work places. Just as important as those effects, but easier to measure, are the financial effects on the couple and their dependents.
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Property Division
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The first financial effect is the division of the couple's property. This includes the house or houses they live in, and cars, CD collections and other physical assets. This can be done by the couple in a marriage separation agreement, but will be done by the court if the couple doesn't take any action.
Asset Division
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Another financial hit is for the couple getting divorced is to divide their liquid assets. This is money in bank accounts and any other forms of easily moved currency. This is the most easily divided asset, but there will likely be a lot of contention as to what, precisely, is fair.
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Alimony
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A longer lasting financial burden of divorce is alimony. Alimony is paid from one former spouse to another, and whichever one was the chief earner is the one that will pay alimony. This is to assist former spouses because they're used to being provided for and will need help getting back on their feet after the divorce.
Child Support
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If the marriage yielded children, child support likely will have to be paid. If one parent gains custody of the child, or children, then the other parent will have to pay child support.
Legal Costs
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Lastly, legal fees need to be considered when getting a divorce. The case has to go through divorce court, lawyers have to be paid and papers need to be copied and searched for. All that costs money. These fees can eat up a significant portion of what's left when it comes to a person's financial assets after a divorce.
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