The impact of divorce on wealth

by | Jun 26, 2018 | Firm News

Those who get divorced in Ohio or any other state may find that it is a blow to their finances. In addition to potentially losing up to half of the assets accumulated while married, it may also be necessary to spend money on legal fees. According to the Center for Retirement Research, those who have been divorced are more likely to run out of assets in retirement than those who have not been divorced.

However, this is not necessarily the case for single women who have been through a divorce in the past. This is because women generally are awarded the marital home when a marriage comes to an end to help raise a child in. While children can be costly to raise, a home can appreciate in value over time. Using the equity in a home can help keep single women financially secure.

A reverse mortgage can also be an option to generate cash flow while single. Ironically, the cost to maintain a home could be the reason why a single woman can become financially secure. To make mortgage payments or spend money on maintenance, it may not be possible to make unnecessary expenditures. By making payments in a timely manner, it increases the equity available to use for other financial needs.

A divorce settlement may have language in it that allows for an individual to obtain spousal or other types of support. It may also allow an individual to acquire a larger share of marital property to maintain a reasonable lifestyle. This might also make it easier to provide stability for a child after a marriage is formally dissolved. An attorney may be helpful in creating a favorable divorce settlement that meets an individual’s current and long-term needs.