Knowing about common financial errors during a divorce may help some estranged North Carolina couples avoid making them. One common assumption is that a divorce must end up in court. However, many couples are able to reach an agreement through mediation or collaborative divorce instead of going to litigation, which may be more expensive.
For most North Carolina couples, the decision to end a marriage isn't made lightly. While statistics show that approximately half of all first marriages end in divorce, it's usually a combination of factors that lead to the decision to split. As long as instances of spousal abuse or other serious matters aren't involved, spouses contemplating untying the knot may benefit from taking a step back to consider the possible financial ramifications.
Lots of North Carolina couples think of prenuptial agreements as a matter only for the extremely wealthy or very famous. However, there are many other reasons why people considering marriage may want to create a prenup before tying the knot. Prenuptial agreements are becoming more common for many different types of couples. In one survey, 60 percent of matrimonial lawyers said that they had seen a notable increase in the number of people asking about prenups in the past three years. A prenuptial agreement could be used to protect family inheritances or property passed down through generations, but it can also be used to benefit entrepreneurs with promising businesses.
The holiday season can be particularly stressful for North Carolina families that are being separated by divorce. Among the emotions common to both parents and children at this time are fear, anger, sadness and loss. However, a child's anxiety can be mitigated if the parents put a clear plan in place for the holidays and maintain a positive attitude.
When people in North Carolina get a divorce, they might make some financial missteps that result in the process being more difficult and expensive. For example, some people go out and spend a lot of money. This feels good in the short term, but the bills will eventually be due.
Every North Carolina family that goes through divorce faces challenges. Unfortunately, children have a tendency to blame themselves for parental separations, but honesty and loving reassurances can counteract these negative feelings. The author of a parenting guide recommends that parents place a priority on their children's relationship with both parents.
For couples in North Carolina, the Tax Cuts and Jobs Act that passed at the end of 2017 may make divorce more expensive. One change is that parents will no longer be able to take turns claiming children as exemptions. Instead, one parent can claim a head of household (HOH) exemption.
Isolation, health problems and financial issues may all affect older adults who get divorced. However, there are also steps they can take to prevent such issues. Couples in North Carolina who are facing what is sometimes called a "gray divorce" should try to exercise and avoid overeating or misusing alcohol in response to chronic stress.
People in North Carolina who are getting a divorce will need to take some financial issues into account. In addition to an attorney, they may also want to work with a financial professional, such as a certified divorce financial analyst, to help guide them through some of the more complex aspects of property division.
Divorced households in North Carolina and around the country have about 30 percent lower net worth than married households according to a study from the Center for Retirement Research, and they are also are less likely to have enough money to live comfortably during retirement. The study, which is based on data gathered from the U.S. Federal Reserve's Survey of Consumer Data, was published online in June.