Finances are one of the major concerns that couples have when going through a divorce. According to U.S. News, over one-third of all couples cite finances as the biggest source of stress on the relationship. Once you decide to divorce, there are new financial concerns. After all, you may be about to cut your income in half. If your spouse made more than you, you may not know how you can cover your expenses.
A divorce does not have to mean financial problems. You can rebuild your finances and protect your wealth. There are ways that a divorce can be a benefit to your financial health.
Access to retirement
During a divorce, you can pull money from your retirement account without any penalty. Generally, this happens when there is a qualified domestic relations order. The money from the account will not have the 10% penalty attached.
Improved investment returns
If you are more conservative with your investments than your spouse, then you may be able to have a more positive impact on your finances after a divorce. You are in control of your retirement planning. If your spouse was prone to panic sell assets, your returns could improve.
Control over assets
While most divorced couples fear having a single income, you may also be able to take advantage of it. You no longer have to fight over your finances. You can budget your money how you see fit. If you were unable to build a savings account or if you had goals to pay off debt, you can focus on those without worrying about disagreements.