Many Texas residents understand that getting a divorce is expensive. If you and your spouse are ending your marriage, it’s not only the process itself that can be costly. You should know how divorce can affect your finances as you move on as a single person.
Financial impacts of divorce
Both spouses can experience the financial impacts of divorce, but women are typically affected more than men. Women are more likely to fall into poverty as their standard of living drops. If their health insurance coverage came from their spouse’s plan, they are more likely to lose it. If the financial situation is dire enough, a woman is also likely to lose her home and be forced to move into a smaller house or apartment.
Divorced mothers sometimes require public assistance to support their families. This is especially true if their former spouse fails to pay the full amount ordered toward child support.
Men also experience a dip in their standard of living after divorce. Usually, they are the ones required to pay alimony and child support and move out of the marital home. Those who provided under 80% of the family income before divorce are the most likely to suffer financial effects.
Fathers who gain primary custody of their children or share custody are more financially affected by divorce due to their added expenses. However, some men might have a portion of their wages garnished to pay for financial responsibilities like child support.
Minimizing the financial effects of divorce
It’s possible to minimize these financial effects when ending your marriage. If you and your spouse are able to agree on how to handle everything and work together to determine a settlement, things might be easier on both your wallets. Divorce mediation is a good option that can help you save money while working together and negotiating in a respectful way.
Divorce doesn’t have to be a tremendous financial burden.