Blog posts tagged in divorce and money
While it is no secret that money problems are a major contributor to the divorce rate, few couples recognize that such issues can also complicate the divorce process. Debt and arguments about debt allocation, which often accompany monetarily complex cases, can also contribute to contention. Learn more about protecting your assets and reducing tension in your divorce with help from the following information.
Understanding the Correlation Between Money and Divorce
Many issues can lead to divorce, but research indicates that early arguments over money are the biggest predictor. Part of this is due to the intensity and duration of the fights that typically occur, but experts believe there are other underlying factors. For example, some relationship experts believe that money issues are an indicator of deeper problems, such as trust issues and power in the relationship.
Divorce is certainly an emotionally difficult process, and divorcees should do all that they can to ensure they have adequate support throughout the process. Yet the recovery from this aspect of divorce is often less difficult than the financial recovery. In fact, one study suggests it could take five years or longer for some to fully recover from the financial repercussions of divorce. Thankfully, it is possible to mitigate this risk. The following information explains further.
Choose Your Assets with Care
All too often, divorcees let emotion override reason, and that can place one or both parties at serious financial risk in the years to come. This is particularly true when it comes to choosing assets - namely assets that carry both emotional ties and significant financial implications, such as the family home. Avoid making this common mistake by critically assessing your situation. If you take the house, can you truly afford the payments, taxes, and upkeep? Or would you be better served by selling the asset and then taking a monetary settlement?