Money is a big concern for many people going through a divorce.
While you may not be looking forward to covering your bills on half the income, there are a few financial benefits to going through a divorce. Here are the top perks of getting a divorce.
Easier budgeting
Ending your marriage means ending fights over money. You no longer have to argue over how to spend your money or beg your spouse to stop the extra spending. A divorce means financial freedom and the ability to budget how you see fit.
Earlier access to retirement funds
Divorce is one of the only times you will be able to retrieve money from your retirement account early without penalties. Once you obtain your divorce records, you are eligible for early access to your retirement fund without the typical 10% fee. However, you will likely have to pay income tax on the withdrawal.
Better investment returns
Depending on your spouse’s investment habits, getting a divorce can mean better returns. For example, if your spouse was very aggressive and took a lot of risks, you can now invest more wisely and see better returns.
More college aid for the kids
Although divorce can be tough on your children, it can give them more college assistance opportunities. The Free Application for Federal Student Aid (FAFSA) only requires the custodial parent’s financial information, meaning more aid opportunities.
While not everyone’s financial status will improve due to a divorce, some find that theirs does. Although you probably do not want to find yourself in this situation, you do not have to worry as much as you expect. Some of these benefits might mean you are in a better financial position.
