Financial Factors to Consider Before Divorce
There is much to be considered before a person decides to divorce their spouse. Divorce can be a long and difficult process, and many don’t understand that it can also inflict great financial damage to both parties. There are better or worse times to get a divorce, with regard to finances and both parties’ specific circumstances. Working with a skilled family law attorney can ensure that anyone who is considering divorce will understand the impact a divorce may have on their wallet. This is the first part of a three-part series that will discuss financial factors that must be taken into account by those facing divorce.
The Real Estate Market
First, getting a divorce during an unstable real estate market can have unintended consequences. In a “hot” market, you may be able to capitalize on your home’s value and quickly sell it; however, when it is “soft” and there is a surplus of homes on the market, you may burn through the equity in your home if you are forced to sell it due to divorce. Each person’s situation is different; however, it may be advantageous for some to have a divorce settlement in which one party stays in the home while the other party takes other assets to compensate for their share of the home’s equity. Doing so avoids selling and moving expenses, as well as real estate fees and land transfer taxes, among other costs.
Second, the economy must be considered, as its overall state may impact the financial challenges a divorce may bring about. A divorce may require one or both parties to rent or purchase new homes or vehicles, or even change occupations. In an unstable economy, all of these issues can become more difficult. Credit may be harder to obtain and jobs may be in short supply. However, in a more robust economy, these issues may be easier, but large purchases like a home, may become quite expensive.
It can be an overwhelming decision to divorce, and starting the process can raise many questions. To learn more about how a divorce may impact your finances and other areas of your life, call the divorce lawyers in Chicago at Nottage and Ward. We can help you determine what options would be best based upon your finances and situation. Call 312-332-2915 today.
Please continue to check back with our blog as we continue this series.
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