Planning for the financial implications of divorce

On Behalf of | Apr 11, 2023 | Divorce |

If you and your spouse in New Hampshire are contemplating divorce, you should realize the financial implications of the move on your lives. Although dividing your assets can often be the most straightforward part of the process, planning for support for your spouse and any children is more complicated.

The three divorce components

Divorce negotiations typically center on dividing assets that a couple has accumulated during their marriage. New Hampshire is different than most states in that it divides marital property through equitable distribution, with a judge determining what is fair under each case. Property accumulated before marriage can be included in this distribution. Asset distribution because more complicated the longer a couple has been married. Outcomes can vary widely depending on your current financial position.

If one spouse has significantly more income than the other, the one earning more money can expect to pay spousal support when divorce negotiations are complete. Alimony is not based on a set formula but on various factors, including the age of the spouses, how long the marriage lasted and other pertinent factors. Child support is based on a set formula, but working out a child custody agreement can become complicated, especially if the children plan to attend college. Payments can increase over time.

Divorce can become expensive

The more contentious your breakup, the higher your legal fees will be. Staying out of court as much as possible and using alternate means for divorce negotiations can help limit your costs. Spouses can find themselves in a cash crunch during this time, so it is often helpful to work out a spending plan to determine your new normal. Carefully evaluate what your post-divorce needs will be to determine a budget.

Other considerations you may have involve the family home. One spouse keeping the home is usually impractical, so most couples sell it and buy separate residences. Liquidating the sale proceeds is more straightforward than determining what one spouse may need to pay property taxes, maintenance needs and other associated costs.