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Are there financial benefits to divorce?

On Behalf of | Nov 29, 2021 | Divorce |

Like most people, you may worry about the cost of your divorce. While divorce costs money, it can also help you save money.

According to U.S. News, you may find yourself in a better financial situation after the split.

Further control over your budget

One of the most significant stressors within a relationship is finances. If you and your spouse argue over money regularly, you may feel relief to have control over your budget again. If your former partner had spending problems or had financial priorities that did not align with yours, then you have the opportunity to reset your priorities. Your lifestyle naturally changes during a divorce, but you can make decisions that benefit you financially. For example, you may choose to downsize your home to live comfortably instead of living beyond your means. You can save your money without worrying about what your partner may do.

Social security benefits for older couples

You may have the opportunity to file for Social Security spousal benefits when you retire. If you and your spouse remained married for at least 10 years and he or she is at least 62 years old, then you can claim benefits. Even if your spouse has not claimed the benefits, you do not have to wait. Likewise, your claim to the spousal benefits does not impact your former spouse.

Access to the retirement fund

Did you know that you can access the retirement account when you divorce? It is one of the only times you can do so without worrying about an early withdrawal penalty. If you receive a qualified domestic relations order, you can withdraw from the account. While you do not have to worry about a penalty, you must pay income tax if you do not have an IRA.

Having control over your money makes it easier to build your accounts.

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