Each divorce is unique, but no matter how you go about it, it costs money. Although there are ways you can lower the amount, the fact still remains that divorce takes a toll on your finances regardless of your wealth. This unpleasant reality may cause you to hesitate in ending your marriage.
However, divorce does not have be financially devastating. In fact, sometimes it can even boost your finances in the long run, says U.S. News & World Report. Just consider these three ways divorce can be good for your financial health.
1. More control over your money
A common cause for divorce is money problems. Do you and your spouse constantly fight over money? Is your spouse a big spender, dragging you into debt and ruining your credit? Is one of you a risk-taker with investments whereas the other is not? Once you are no longer tied together financially, you can have complete decision-making power over your money and not have to worry about your ex's financial moves (except as they affect child and spousal support).
2. A new lifestyle
Losing or splitting assets may be challenging at first, but it can present a positive opportunity to change your lifestyle. Downsizing your living space may provide the extra income you need to take up that hobby you have always wanted to try. Divorce means you will no longer have the obligation of buying gifts for a spouse for birthdays, holidays and anniversaries, and you may have more free time to do what you like. If you are re-entering the workforce, your new job can be a wonderful opportunity to specialize skills and build your own wealth.
3. Access to other finances
College tuition for your children is unlikely to be in a child support order, so depending on your sole income, your children may have increased eligibility for financial aid for school. As for you, you may be able to access retirement accounts early without a penalty through a QDRO or to file for Social Security spousal benefits if your marriage lasted at least a decade.