Who Says Divorce Doesn't Pay?

How To Come Out Of Your Divorce Financially Ahead

2/26/18

Divorce is expensive, regardless of where one lands financially once the smoke clears. Spiritually and emotionally, divorce can be both exhausting and draining, and the same can be said for one's assets and retirement savings. Thankfully, divorce doesn't need to be a death sentence financially. With some planning and a little knowledge, you can come out ahead and move forward.

Aid For College Tuition

As difficult as divorce is on children, college costs is one place they have a distinct advantage. The Free Application for Federal Student Aid only calls for the financial information of the custodial parent. Be aware that child support and alimony must be included on the FAFSA, and can be a factor in aid determination.

A Fresh Start

Divorce changes people and people will often resent having to make the changes divorce may mandate, but sometimes it can be a good thing. Changes in routine, disposable income, diet, living accommodations, can all work to the advantage of people who may need to get a handle on their lifestyle and habits.

Better Budgeting and Control of Money

Fights over money may have led to the divorce - but once it's done, controlling and allocating funds may be easier. There will be less arguing and pleading about spending habits, and fewer unexpected expenses. Once finances are separated, within a few months one can see exactly who is acting judiciously with their money, and who isn't.

Perks For Older Divorcees

Some older people may be eligible to receive up to half of their spouses benefits even as they allow their own to grow until age 70. Providied you were at least 62 years of age by January 1st 2016, it is possible to file a restricted application for Social Security Spousal Benefits once full retirement age is reached.

Even with an income level decimated by divorce it is still possible to recover and build wealth. While not everyone's financial situation after divorce can be salvaged, many can and it's often as big a surprise to them as anyone. With good planning and judicious, measured action, it IS possible to come out ahead.

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