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Six Ways Divorce Can Affect Your Financial Health

Divorce can be emotionally painful. But the financial implications can be just as painful, and the consequences can be long lasting for everyone involved. A divorce attorney can explain how divorce laws may have an impact on your finances. Identified here are six of those areas:

1. Child and spousal support
   Many factors determine which spouse pays for alimony and how much is to be paid. Yet it is crucial that both parents come to an agreement regarding the arrangements about child support early on in the divorce process.
2. Marital property
   Arizona is a community property state, which means that assets acquired during your marriage will be divided equally.
3. Marital debt
   Any debts accumulated during the marriage, such as credit card debts and mortgages, are normally divided up equally at the time the divorce is finalized. However, debts do not have to be divided equally. The only requirement is that the division be equitable. Thus, a judge could require that one spouse assume a debt that is in the names of both spouses. If the debt goes unpaid, it can have a disastrous impact on your credit scores. This unfortunate situation can be avoided by immediately closing joint accounts and removing your spouse as an authorized user of your individual account.
4. Taxes
   After the divorce is finalized, your filing status changes and you lose any benefits from filing jointly. You must determine which spouse will claim any children as dependents. Also, there are tax implications on things such as property acquired as part of a settlement with your ex-spouse. It is recommended that you speak with an experienced divorce attorney if you have questions about the tax liabilities of divorce.
5. Housing
   Even if you move out of the marital home after the divorce is final, you could still be partially responsible for the mortgage. That is why it is a good idea to meet with Gilbert divorce lawyers in order to protect your interests.
6. Insurance
   Divorce has implications involving many types of insurance:
   • Homeowners insurance: If you plan to stay in the same residence after the divorce, you will need to change the homeowners insurance to your name.
   • Auto insurance: You will need to change your auto insurance policy to remove your spouse. This may alter your premium.
   • Life insurance: Review the beneficiary details of your life insurance policy. You should consider removing the name of your spouse if he or she is the main beneficiary. On the other hand, the court may require that you obtain life insurance with your ex-spouse as the beneficiary to protect any spousal or child support obligations.

For an experienced legal representation for family law matters in Arizona, contact an experienced Chandler divorce attorney today.

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