Many marriages today end in divorce. It is not uncommon for a divorce to leave either, or both, parties facing financial difficulties. Many couples in Ohio who are considering divorcing have serious concerns about the financial impact of dissolving their marriages. However, there is a lesser-known fact of divorce, a bright side to an otherwise glum scenario. In some cases, divorce can actually improve a person’s financial situation. With a new perspective, a competent family law attorney by your side and strategic planning, your divorce has the potential to breathe new life into your finances.
Total control over your finances
It is no surprise that money is a point of contention for many married couples. Upon divorcing, you are now in the driver’s seat of your spending, saving and investing habits. If your former partner had a drastically different view of money than you, this can be an opportunity to start fresh. As a single person, you are in control of what financial goals you prioritize and the cost of your lifestyle. There is no need to negotiate or compromise. For those with a financially irresponsible partner, this can lead not only to more freedom but more wealth.
Penalty-free retirement access
Some divorcees can be eligible to withdraw a portion of funds from a retirement account without paying the hefty early withdrawal penalty. Although income tax will still need to be paid on the withdrawal, this could provide a person with a much-needed injection of cash. It is also important to note that retirement funds should be used wisely and not for frivolous spending.
A new perspective
It may be tempting for someone to immediately fall into despair over finances during a divorce. While all divorces have a financial impact on both parties involved, the consequences do not necessarily have to be negative.