Divorce Wreaks Financial Havoc on Both Spouses

 Posted on June 21, 2012 in Divorce

A recent article from Mint.com details the financial devastation that a divorce can have on a person. While it may seem that one divorcing spouse suffers more financially than the other, the reality is that both spouses typically feel the financial fallout from a divorce. Common financial drains that occur during a divorce, and that may affect both spouses, include legal fees, alimony payments and child support payments, not to mention the division of debts and assets and the tax consequences of that division.

Many of these increased costs come about simply due to the fact that what has been one household now is being divided into two separate households. One spouse has to find a new place to live, and regular household expenses necessarily double. Instead of the expenses of a single household, now there are two rent or mortgage payments, multiple utility payments, two cable bills, etc. Even for spouses with relatively equal incomes and resources, both spouses are likely to feel the pinch of handling all of the bills on his or her own. In many cases, it is only alimony or child support that can help save a spouse from being completely unable to maintain the most basic of household expenses.

Moreover, as financial professionals are quick to point out, the tax consequences of divorce can be substantial. If a divorcing spouse chooses to clear out bank accounts and cash out retirement accounts, the taxes and penalties can be overwhelming. This is one reason that it is essential that you get legal advice from a divorce attorney regarding all aspects of your divorce before making rash decisions about your assets. For the help that you need in this area of the law, contact your experienced DuPage County divorce lawyer today, and see what you can do to minimize the financial pain of a divorce.