How will divorce impact your financial status?

On Behalf of | Aug 29, 2022 | Divorce

The potential financial impact of a divorce is one of the biggest hurdles for Florida residents to overcome, practically and mentally, when they are considering ending their marriages. There is no doubt that, for many people, a divorce can be a significant financial event in life – one that may leave Florida residents in a position where it will take years to recover.

Your unique finances

So, how will divorce impact your financial status? Well, consider one of the biggest issues in most divorce cases: debt and property division. Sorting through the assets and debts of a couple that has been through years – or even decades – of marriage oftentimes is not easy. And, determining which assets and debts should be subject to division can be even more difficult.

Say, for example, you have inherited a sum of money that you decided to keep separate from the joint finances of the marriage. In most cases, that inheritance would be easily identified as yours alone. However, if you have co-mingled those inherited funds with the joint finances of the marriage, it can be much more difficult to determine that the inheritance funds should be separate.

Of course, that is just one example. Student loan debt, credit card debt, retirement accounts, real estate – these are all examples of assets and debts that may be subject to scrutiny in the divorce proceedings. In the end, your unique financial situation will usually determine how debt and assets are divided. You can prepare by having a full understanding of your finances before the divorce case is filed.