You have probably heard the horror stories of how divorce causes irreversible financial hardship. While true that divorce will impact your finances, it certainly does not have to be the reason you no longer enjoy a quality life.
Surprisingly, there are a number of financial benefits to divorce. When you know what these are, you can determine how to use your situation to your advantage.
Money is one of the most common disruptors in marital relationships. In fact, according to U.S. News, in a survey of married and partnered persons, over one-third of participants cited money as the primary stressor. Often, this stress is the result of disagreements over spending, saving, debts and asset ownership.
Divorce allows you to move away from the monotony of shared finances and allows you to make your own decisions about how to use or not use your money. You can create a new budget that addresses your unique needs. You can determine when and how to spend your money. With your income to yourself, you can identify goals for your future and then distribute your funds accordingly.
Once you get back on your feet, you may look into diversifying your savings with different forms of investment. Depending on the strategies you use, your single status could help you earn better returns on your investments. If you are over the age of 50, you may have Social Security support. If you have college-aged children, your single status may increase the amount of federal student aid they receive depending on their eligibility.
When you know the financial risks of divorce, you can immediately make changes to your budget to account for potential challenges. Your proactive approach to saving money and relinquishing control of your finances can help you prevent repercussions.