Corona Divorce: Protect Yourself Financially
As originally appeared in The Jerusalem Post on August 13th, 2020.
Divorce is expensive. I used to joke they were going to call it ‘all the money,’ but they changed it to ‘alimony.’ It’s ripping your heart out through your wallet. Robin Williams
Unfortunately, the experts In Arizona based Family Law Lawyers mention that there is a lot of anecdotal evidence that seems to be showing that we are about to see a global surge in divorce that has been sparked by Corona. You can see the original site for more information. That’s not to say that pre- Corona, the world had matrimonial bliss but rather that Corona has been the straw that broke the camel’s back in many cases. While this is a depressing topic for many, it’s also important for those going through the process to be smart about the financial implications of this move. The Law Office of Robert B. Buchanan in Chicago reckons that a break from their work-life which is due to the pandemic has made them progress in their personal life achieving couple goals together and for some, it has also made them realize that they are not compatible in the relationship which eventually leads to divorce. When the divorce case is proceeding towards the end where the judgment is about to be as the divorce granted, there should also be from your settlement lump sum, an equal share must be given to the second party which is very useful to lead the life on their own.
But all hope is not lost. According to attorneys for marital agreements, there is evidence that periods of social upheaval also tend to lead to higher marriage rates. In a report by the American Psychological Association titled, “Life-course transitions and natural disaster: Marriage, birth, and divorce following Hurricane Hugo” the conclusion was that the rates of all three increased. “Time-series analysis indicated that the year following the hurricane, marriage, birth, and divorce rates increased in the 24 counties declared disaster areas compared with the 22 other counties in the state. Taken together, the results suggested that a life-threatening event motivated people to take significant action in their close relationships that altered their life course.” Try to get these issues sorted out by speaking out honestly to one and another before filing a divorce in the court. It is even better to consent with child custody lawyers, who will also try to solve the issue before taking it to the knowledge of the court. Visit the website to hire a trusted divorce lawyer who will help you in all legal matters.
After the devastating 2011 earthquake and Tsunami in Japan, Lucy Craft of CBS News reported, “One recent survey shows a third of women and a quarter of men more eager to marry because of the disaster.” On the other hand, she reported, “But as some exchange rings, divorce is also a smash hit. At this so-called “divorce ceremony,” husbands and wives take part in a strange and somber ritual to nullify their nuptials. Anecdotal evidence says Japanese couples are calling it quits in record numbers.”
These are just two examples but there is a lot of research supporting the theory. I’d like to focus on money tips for women who have gone or are going through a divorce or still confused whether it’s the best decision to divorce or not.
What do you need?
The first thing a divorcee needs to do is make a budget. This is the first step towards financial empowerment. It’s important to note that your numbers may be skewed because of Corona. There is a good chance that expenses for entertainment for example are next to nothing, and the food bill is sky-high. Keep in mind that one day when we get back to normal the budget numbers will change. Many clients have told me that by doing this relatively simple exercise, they feel that they gained a level of financial control they never assumed they would have. Break your expenses down to those that are monthly and those that are annual, one-time expenses. Once you have that organized, write down all of your various sources of income, salary, child support, Bituach Leumi…etc. Once you know how much money enters your bank account each month, create a budget that limits your spending to the amount of income you have.
As I have written previously, “Understanding your budget can also play a major part in the asset division during your divorce proceedings. A well-known family law expert recently told me that much aggravation and time would be saved if women knew how much money they needed to live off of. With this information, women can avoid spending years and thousands of dollars fighting for every last penny. If you know how much you need to live, you’ll know how much money to ask for.”
A big chunk of cash
The divorce attorney salt lake city explains that as part of a divorce settlement, you may come into a large lump sum of money. Don’t automatically run out and buy real estate. This money will be used to help meet any financial goals that you may have. If you use it all on a property, you may be left with no liquidity, or no way to create much needed supplemental income. If after doing your budget you see that you will need more income to make ends meet, then you will want to make sure that your money is invested in a way that can maximize the amount of income produced, while preserving or even growing your portfolio. I am not against buying a property, but that decision needs to be analyzed first, to make sure that you can afford it.
Especially during these Corona times, when everyone seems tired and a bit depressed, use this newfound independence and take control of your new financial reality. Seek Personal Financial Planning Consultation and create a plan that will enable you to get on with your life and be financially independent.
