When people in Pennsylvania decide to divorce, they may be particularly concerned with how they will emerge financially from the end of their marriage. The financial consequences of divorce can linger on long after the dissolution is finalized and after the emotional and practical matters have been handled. However, by keeping some guidelines in mind, divorcing spouses can help to stay on track toward achieving their financial goals.
Some people may be tempted to spend in the period immediately following their divorce. They may want to explore the single life with a new look, a vacation or a new car. They already need a new place to live, so they may consider splurging on a dream home. However, the period after divorce is a time for financial adjustment. Moving from a dual-income household to a single-income household can have a major effect on people’s ability to handle certain expenses. By waiting to jump into major purchases for a period after the divorce is finalized, people can make better choices that fit their new budgets.
In other cases, people might be struggling to keep up with monthly expenses after a divorce, and they may look to cash in some of their investments as a means to tide them over. However, selling off investments can come with significant tax consequences. In addition, it could be a major setback to a person’s savings goals and financial planning for the future. They might be better served by finding ways to cut costs and reduce expenses.
People who are thinking about divorce may be confused about what the end of their marriage will mean financially. A family law attorney may provide a divorcing spouse with advice and representation about a range of issues, such as spousal support and property division, as they work to achieve a fair settlement.