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How can you financially benefit from a divorce?

On Behalf of | Nov 2, 2021 | Firm News |

When it comes to divorce, most people talk about financial disadvantages. However, according to the U.S. News, there are many financial benefits to divorce.

You may be able to increase your bottom line and boost your financial profile.

Retirement fund access

During a divorce, you have a rare opportunity to pull money from your retirement account without an early withdrawal penalty. You may reach a qualified domestic relations order in your divorce so you can access the account early. While you can utilize the money however you want, you may consider putting aside the money you receive for retirement.

If you are an older divorcee, you may also be eligible to file for Social security spousal benefits. When you remain married for at least 10 years and your spouse reaches the age of 62, you can claim the benefits once you divorce.

Budget and financial control

Some partners want more financial control, but until divorce does not have as much power over the budget. If you have a former spouse who likes to spend money or tends to go over budget, you can dial back when you go through a divorce. You have control over your assets. You can make investment returns or exact control over the funds to save money and to create a more financially stable life for yourself.

When you divorce, you have the ability to start over financially. For example, you can reset your priorities. If your spouse wants a large home but would rather have a cozy place with more room to save money, you can make those choices.

Divorce does not always mean you lose money. It can also mean that you have an opportunity to be smart with your resources.