Getting a divorce in Delaware can disrupt your life in several ways. You might have to move to a new location or spend less time with your children. Divorce can also possibly hurt your finances in several ways.
Income
Divorce can potentially cut your income in half. If you live in a two-income household, you’ll lose your other source of money during the divorce. Perhaps you don’t have a source of income and depend on your spouse’s earnings. In that case, you might find yourself in a household without income. Or you might find yourself paying spousal support or child support.
You’ll likely have to adjust your budget to account for the decrease in income. To make up for the reduced income, it may become necessary to get a higher-paying job or find other sources of money.
Taxes
Divorce usually changes your tax filing status. If you and your spouse filed jointly, you’ll file as a single taxpayer after the divorce. And if your spouse has primary custody of your children, you can’t claim the children as dependents. Dissolving your marriage might also lower your taxable income.
Your new status as a divorced person will affect your tax filing status. Before filing your taxes, you might want to speak with a tax professional to help you understand your tax situation.
Housing
Unless you remain in the family home, you’ll need a new place to live. Therefore, rent or a mortgage is probably in your future. Paying for housing can take a huge chunk of your income. There’s also the expense of home insurance, renter’s insurance, furnishings, utilities and other costs.
When searching for new housing, take your post-divorce income into account. If you don’t, you might end up with a mortgage or rent you can barely afford.
Divorce has a significant impact on your finances. You’ll have to make several adjustments in all areas of your life. Take your post-divorce income into account when making financial decisions.
