The obvious effect of divorce is separation from your previous spouse. If you have children there are child custody issues to think about. Check out the child custody portion of our site here. But whether there are children or not your finances will change. Sometimes you will even have more financial obligations because of the divorce. Child support is one consideration but alimony is another. There are several types of alimony that you should be aware of. Temporary alimony requires one spouse to support the other spouse while separated but not yet divorced. Rehabilitative alimony requires one spouse to support the other after divorce for a set amount of time in order to establish a stable life. Permanent alimony requires one spouse to support the other for the duration of their lives. Reimbursement alimony requires one spouse to repay the other spouse for expenses they paid for while married. Every jurisdiction is different, but the main point is that you may be responsible for some sort of help to your spouse after the divorce.
Taxes are another consideration. If you and your spouse have been filing joint taxes you should consult with an accountant to be sure you know all the options available. Also you and your spouse will be responsible for any inconsistencies and legal ramifications from previous taxes you have filed jointly, even if you or your spouse didn’t participate in preparing the taxes. If you and your spouse are currently separated and need to file taxes it is generally best to select the “married filling separate” option. This way you and your spouse will be liable only for your own finances, even though it may mean a higher tax liability.
Most divorce situations will have other ramifications. This portion of the site will outline other effects that you may run into.
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