Along with infidelity and abuse, financial issues are a major factor when couples get divorced. If you and your spouse cannot see eye to eye when it comes to money, you are likely to face numerous difficulties throughout the course of your relationship.
With this in mind, U.S. News & World Report explains how divorce might offer a few key financial benefits. Here are some things to keep in mind while navigating this difficult process.
Allows you to develop new financial priorities
You and your spouse might have different goals in life. As a result, you will face more difficult financial planning if you cannot agree on money issues. Divorce will allow you to pursue the goals you prefer, whether that is going on an epic vacation or retiring early. For instant, if you have a qualified domestic relations order, you can withdraw money from your ex’s retirement fund early without incurring a penalty.
Provides access to Social Security benefits
While it depends on the age of your spouse and how long your marriage lasted, many divorced spouses receive Social Security benefits from their exes. If the spouse is 62 or older, and your marriage lasted for ten years or more, you can request benefits. For older people living on fixed incomes, these benefits are essential for covering basic expenses.
Decreases investment risk
If you and your ex invested in the stock market together, you may have disagreed on the right investing approach. High risk investing offers great returns, but it can also result in a massive loss of money if your investment falls through. When investing on your own, you can choose investment vehicles that are lower risk for a safer, more consistent return.
Before deciding to get divorced, you want to ensure you are making the right decision for your life and stability. You should also have a good understanding of you and your spouse’s current assets, which can help you develop a plan when it comes to their division.