There are many hardships that people may think about when the topic of divorce comes up – that of sharing custody of your children, splitting your assets, and dealing with the emotional side of things, especially if you believe you were treated unfairly, subjected to abuse, or if your spouse was not faithful in your marriage.
While a divorce may not be easy for someone to overcome, there are a few upsides to consider. If you had issues in your marriage that led to divorce, those issues will most likely dissipate after your divorce is final, and you can take time to rediscover yourself and create a new path for your future. One item that many overlook as being positive during a divorce is that of finances; however, there can actually be some financial perks as a result of a divorce. Below are some of the financial advantages to consider:
- Penalty-Free Retirement Funds
Most of the time, if you try to withdraw retirement funds early, you will have to pay an early withdrawal penalty. There are a few cases where you may not have to pay this penalty, though, and one may be during a divorce. As part of your divorce, a qualified domestic relations order may be reached which allows you to withdraw funds from a retirement account early. If this is something that interests you, talk with your experience divorce attorney for more information.
- More Control Over Money
Financial freedom can be a benefit of divorce – especially if a marriage included conflicts regarding financial priorities. After divorce, you should have the control to set your own budgeting priorities. Plus, if your ex-spouse was a heavy spender, your financial situation may improve greatly after divorce.
- Social Security Benefits
When it comes to social security, you may be able to claim benefits based upon your former spouse’s earnings level. You may have the ability to earn more benefits than you could have received per your own earning history. Before you take the next step on filling out social security paperwork, consult with your divorce attorney to ensure you meet the right criteria and can maximize the benefits.
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- Financial Aid
One thing many people will agree on is that college is expensive. When the student’s parents are divorced, there may be new ways to get college aid from the FAFSA. Usually, divorced parents should only have to report the income of the parent who spends the most time with their child, and having only one income may make your child eligible for more financial aid. As with everything related to divorce, we encourage you to talk with your attorney for more details since every divorce case is different.
While divorce is a complicated topic, and one that can have many obstacles to overcome, there are many positives that should be considered along the way. One of those positives is that of finances.
If you have questions about this information, or if you would like more information about how our law firm can help you in your divorce case, contact us online or call us at 412-261-4040.
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