Study Suggests it Can Take Years to Financially Recover from Divorce

 Posted on February 11, 2021 in Divorce

Ending a marriage is a difficult endeavor with many possible financial pitfalls from which a person may spend years trying to recover. In fact, one study suggests that it may take as long as five years to overcome the financial impact of a divorce. In some cases it may take even longer, possibly decades. However, there are ways to minimize the financial risks of divorce, especially if you are well prepared and you have the guidance of a qualified divorce attorney.

The Intersection of Divorce and Debt

Most Americans have debt. Some fail to manage it responsibly, but others are diligent about only taking on obligations they can afford. However, both groups are at risk of financial difficulties after a divorce. This is due, in part, to the splitting of one household into two. Each party must now cover their own separate bills, housing expenses, and utilities. They must also be able to pay the share of the marital debt that was allocated to them, which can be difficult to manage on a single income. The more debt a couple has going into the divorce, the higher their risk typically is.

How Divorce Planning Can Help

Instead of leaving themselves open to financial risks during and after divorce, couples can plan for the event and adjust their situation accordingly. This might mean putting off the divorce until debts are paid, or determining who will be responsible for each debt ahead of time. This can be done through mediation or other forms of alternative dispute resolution. Alternatively, if an agreement cannot be reached, it may be necessary to take an aggressive litigated approach to protect your interests during the divorce process. In either case, the assistance of an attorney is highly encouraged.

The Importance of an Experienced Lawyer

Creating a plan for divorce goes beyond simply dividing your debts and assets. It is about knowing the specific hurdles you may encounter and how to overcome them. It is ensuring that you understand your options and the potential implications of each one. It is about adjusting your actions so that you have a better chance of creating the kind of life you want to live. This is why a seasoned attorney is considered a critical component of the divorce planning process.

Contact a Lombard Divorce Attorney

At A. Traub & Associates, we recognize the importance of personalized representation, and we are committed to meeting your divorce needs. Our experienced DuPage County divorce lawyers make your future our top priority and give you the representation you deserve. Call 630-426-0196 today to schedule your confidential initial consultation with us.

Source:

https://verstaresearch.com/wp-content/uploads/2020/01/Fidelity-Divorce-and-Money-Fact-Sheet.pdf