Divorce is seldom easy, and even the most amicable of splits may bring emotional turmoil. Some divorced couples in Pennsylvania discover that dividing assets in half is not as fair as it sounds. In fact, property division may decrease one’s wealth. Some reports say that after a divorce, a person’s wealth is reduced by 77 percent compared to the wealth of a single person.
If a couple owns a home and has a retirement fund, for example, the spouses must consider the cost of the house, as well as the value of both, when they divide these assets. A retirement fund costs nothing to maintain, but a home comes with a mortgage, taxes and repairs. During negotiations, it is important to know whether one person with one income can keep up with those costs. Despite a home’s sentimental value, retaining it after a divorce may be more of a financial burden than one can bear.
Signing papers without understanding the long-term implications may leave one with a settlement that cannot support him or her. Those facing divorce should evaluate their futures to determine what may be needed in order to assure some financial security. This is best done well before the day of settlement.
Thinking ahead may be difficult when one is emotional about the end of a marriage. However, if one does not take the time to consider the years ahead, he or she may be left with financial struggles and hardship. Property division during a divorce should be considered carefully, and many in Pennsylvania find the assistance of experienced attorneys to be helpful and comforting.
Source: blackenterprise.com, “What You Need to Know About Money and Divorce“, Stacey Tisdale, May 16, 2016