According to a study by online marketplace Worthy, many people experience financial surprises when they go through a divorce. Here are some of the most common financial surprises divorced people experience and how to avoid them.
First, many divorced people in California are unaware of how much marital debt they accumulated during their marriage. When you add up credit card debt, student loans, 401(k) loans, a mortgage, and other debts, you may be surprised to find out how much you actually owe.
Another common surprise relates to child support and/or alimony. Many people expect the payments they receive to be higher or expect them to last longer than they actually do. Because of this, many people are surprised to learn that they have to re-enter the workforce, possibly after years of staying home with the kids.
Many divorced spouses are also surprised to learn that they can no longer afford to keep the marital home after the divorce. Keeping the family home is great for sentimental reasons, but, unfortunately, it can be difficult to keep up mortgage payments and maintenance costs without your spouse's income.
The best way to avoid these financial surprises is to stay involved in your family's finances and share responsibility with your spouse when it comes to earning money, investing, and paying bills. Giving up all control of your finances when you get married and letting your spouse manage everything can make post-divorce life more difficult. Even if you let your spouse control the finances during your marriage, it is not too late to get involved. If you are considering marriage dissolution, collect all your financial records and meet with an experienced family law attorney to review your records and get a better idea of your financial situation. By doing so, you can better position yourself for life post-divorce.