Many people assume that they will have at least a slightly lower standard of living after divorce – even with a fair settlement. They’re willing to trade that for getting out of an unhappy marriage. However, that may not be the case for you – particularly if you’re the spouse with smarter financial instincts and habits.
Money is one of the primary sources of friction in marriages – not necessarily the lack of it but differing attitudes towards money that people bring into a marriage that are often based on their parents’ relationship to money.
There are a number of potential financial benefits to divorce. Let’s look at a few:
More control over your money
If you were the saver in the family and your spouse was the spender, having complete control over the budget and where your money goes can be a big relief. You don’t have to worry that your carefully crafted monthly budget will get blown within the first week.
More success with investments
If your spouse controlled the investments and was always looking for the next big thing, you may have ended up losing more than you invested – or at least not seen the steady increase you’d hoped for. Having control over what types of investments you choose based on your age and goals (and good investment advice) can result in a nice nest egg.
Financial priorities that are appropriate for you
Sometimes a good deal of the family income goes toward one spouse’s expensive taste in clothes, hobbies, cars and more. If you were the other spouse, you may be able to buy more of the things you want on one income than you were able to on two.
These are just a few of the potential financial benefits of divorce. There are others, depending on your age, whether you have children and more. It’s always best to have your own financial and tax advisors from the time you begin seriously considering divorce. This will help you and your legal team seek the best agreements for you.