You may experience a tangle of emotions about your divorce. Learning what you could gain from dissolving your marriage may lighten your mental stress.
U.S. News & World Report explores the monetary advantages of ending a marriage. You may notice improved financial health after signing your divorce documents.
More financial control
If you made a lot of financial sacrifices during your marriage, you could breathe easier once you divorce your current spouse. Perhaps the two of you did not always agree on how to save or spend money. No longer must you compromise on your financial goals or bargain with your partner about money.
Potentially better portfolio performance
Maybe you and your soon-to-be-former spouse shared an investment portfolio. If you have different investment strategies, divorce could net you better portfolio performance. Your tendency to invest aggressively or conservatively could pay off now that you no longer need to accommodate someone else’s approach to investing.
Penalty-free access to retirement funds
Because of your divorce, you can make early withdrawals from your retirement account without facing a penalty. To make the most of this financial benefit, you and your partner must draft a qualified domestic relations order. Penalty or not, you still take a risk by withdrawing from a retirement account early. If you take advantage of the option, use the money for your post-divorce life carefully.
Reshuffle your financial objectives
Perhaps you wanted a smaller home than your current marital home. Did you sacrifice your dream of starting a business for your marriage? After finalizing your divorce, you have the space to refocus your financial priorities.
Understanding divorce’s financial benefits can help you navigate a tough life chapter. Keep the above insights in mind as you complete the legal process.