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The impact of divorce on personal finances

On Behalf of | May 11, 2023 | Divorce |

Divorce can pack usually packs a financial wallop to go along with the emotional upheaval. In some situations, it can decrease a person’s standard of living by 30% or more. Even though divorce rates have actually been dropping over the last few decades, they have increased for older generations. Here are a couple of ways divorce can affect an individual’s finances in New York.

Financial struggles

Divorce can affect the ability to save for retirement. This is because newly divorced individuals typically focus on replacing the assets they once had, like the family home. They might also experience drops in their incomes, which may make it more difficult to save for retirement. Creating revised savings plans can help get back on track with achieving retirement goals.

In addition, if the parties had joint credit cards, both may have to pay off the debt even if only one of them accumulated it. This could also apply to auto loans, mortgages and bank loans. Creating up-to-date budgets can help to handle these debts with confidence.

How an attorney can help

Going through a marital breakup in New York is challenging at any income level or stage of life. However, a family law attorney can help a client to better understand the divorce process and appropriately address divorce issues in a positive manner, such as property division and spousal maintenance. The attorney will pursue a just and comprehensive outcome on the client’s behalf, working to ensure that the client’s rights are protected each step of the way.