It comes as no surprise that divorce can be a costly endeavor. Legal fees, becoming a single income household, and support payments can do major damage to your wallet. As awful and scary as that all sounds, there is a financial benefit to divorce.
Fresh Start for Financial Responsibilities
You face a big lifestyle change when you go through a divorce, and there is a financial benefit to this. When your lifestyle changes, you have the opportunity to revise your current financial responsibilities. For instance, a big adjustment, like selling the marital home and downsizing, can be great for your financial future.
Financial Benefit for Kids
An often overlooked financial benefit of divorce involves your children and their college expenses. The cost of a Bachelor’s degree continues to rise, and many families turn to the Free Application for Federal Student Aid (FASFA) to help offset tuition costs. FASFA only requires that the custodial parent provide their financial information, which they use to determine the amount of aid a student will receive. This means that your children can get a larger amount of educational aid, which is a huge financial benefit.
Paying Less Taxes
Your taxes will be impacted in a couple of different ways when you get a divorce. Two of the major financial benefits surround your filing status and tax deductions. Your filing status will change from “married, filing jointly” to “single”, which may place you in a lower tax bracket.
The biggest financial benefit during tax season involves your deductions. You may end up paying less for standard deductions, such as medical expenses, but you may be on the hook for support payments. Double check your divorce agreement, and contact your attorney if you have any questions.
Better Returns on Investments
Divorce won’t necessarily make your investments more lucrative, but it can help you make better investment choices. When you get divorced, and are forced to reevaluate your finances, and in doing so, you will become more educated and informed. Knowledge is power, especially when it has such a big financial benefit.
The Right Attorney Can Help
Divorce has the power to wreak havoc on your finances. The right divorce attorney can help make that financial blow a little softer.
At Brian D. Perskin & Associates P.C., we specialize in divorces with complex financial components. We strive to provide expert representation, with an emphasis on securing your financial future. For more information on New York divorce, or to schedule your free consultation, contact us at 718-875-7584 today!