Everyone has heard divorce horror stories, especially regarding what a financial drain the process can be. However, divorce in Maryland sometimes leads to unexpected economic benefits.
Money disagreements are a common reason for divorce. Unfortunately, even spouses who love each other might be financially incompatible. Though a divorce costs money up front, you can regain control of your finances once it’s over. Instead of sharing responsibility for financial decisions, your budget can once again be precisely how you like it.
Whether your former spouse spent more than you preferred or spent too little, you no longer have to concern yourself with their financial wishes. If you’re a more astute investor than your former spouse, divorce allows you to manage your money wisely and reap greater rewards.
Retirement savings and Social Security benefits
When you divorce, you might be able to withdraw money early from retirement funds without any of the usual penalties. You could also get Social Security spousal benefits early. Typically, you’d need to wait until your spouse claimed their benefits. If you’re divorced, you can file to receive benefits even before your former spouse claims them.
If you have children, divorce might actually make it easier to pay for their college educations. FAFSA, the Free Application for Federal Student Aid, only counts the income of the parent who has custody. With a lower income listed on the FAFSA forms, your child might receive significantly more aid than they would have otherwise. A family law attorney might be able to provide more information on handling higher education costs after divorce.
Divorce is never fun, but it doesn’t need to be a financial disaster. The dissolution of a marriage can be a chance for each person to reassess their financial situation and goals. You might even be better off in the end.