Emotions are often running high during a divorce. It’s not the ideal situation for making sound financial decisions. There are several key financial aspects of a divorce in Washington that you must be aware of to set yourself up for a better life after officially ending your marriage.
You should look at the after-tax value of your assets to negotiate a fair deal with your spouse. Certain methods of dividing property aren’t worth it because of the taxes. Considering tax implications while determining how to divide your assets allows both of you to walk away with more money.
Lower Standard of Living
Most people face a lower standard of living after a divorce because they no longer have another person’s income to mix with theirs. Stay-at-home parents tend to experience greater difficulty during the transition because they have the stress of entering the workforce after years of not holding a traditional job. If you’re in this situation, you could request alimony to help support you in developing the necessary skills to find employment. However, your spouse would need to have the financial means to provide alimony. If they only earn enough money to support themselves, then a court might not require that they pay alimony.
The family home is usually a financial burden after a divorce, especially if you become the only one responsible for it. You’ll want to do the math to see whether you can afford to keep the family home. If you’re considering nesting, you should draft an agreement with your spouse that details the rules and the process when one of you wants to end the agreement to prevent future conflict.
With the right financial planning, you could minimize the impact of transitioning to one income. You could also ensure that both of you keep more of your hard-earned money and assets.