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How can your divorce affect your finances?

On Behalf of | Oct 20, 2022 | Divorce

You probably already know that divorce is expensive. It’s especially costly to end your marriage in Tennessee if your split is contentious. However, divorce can affect your finances in other ways as well.

Financial rude awakenings of divorce

Ending your marriage is stressful as it is, but you get financial rude awakenings during and after the process. Your overall cost of living declines significantly once your divorce is final. What you once enjoyed during your marriage is now gone as you have to move forward as a single person. Women are hit particularly hard by this reality and are more likely to end up in poverty post-divorce.

If you’re a parent, you may find that the costs of child care are much higher than you ever realized while you were married. In some cases, child support might not even be enough and you might have to turn to public assistance.

You might lose your health insurance after the divorce. Usually, this occurs when you’re added to your spouse’s work health insurance plan. If you’re a woman, your risk of this issue is higher.

Why divorce affects spouses differently

Men and women both suffer financially after divorce, but women tend to suffer more. One of the biggest reasons for this is the wage gap. Even now, in 2022, women still earn less than men in spite of working just as hard. There is still an issue of women being more likely to stay home to care for the children as well. This leaves them struggling financially after the marriage ends.

Men often suffer financially when they have high child support obligations. This is made worse when they experience wage garnishment.

Divorce can hurt financially if you’ve relied on money as a couple. Over time, things could improve.

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